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The Danish Competition and Consumer Authority closes case regarding reorganisation of the pig breeding system DanBred

28. September 2017

The Danish Agriculture and Food council (in Danish “Landbrug & Fødevarer”) has adjusted its planned reorganisation of the DanBred (in Danish “DanAvl”) system. The adjustments remove the prelimi-nary competition concerns that originally caused the Danish Compe-tition and Consumer Authority (“DCCA”) to open an investigation. The DCCA has therefore decided to close the case.

The Director General of the DCCA, Jakob Hald, says:

"By making adjustments to the planned changes in the DanBred-structure, the Danish Agriculture and Food council eliminates the preliminary competition concerns that led to the opening of the case. We believe now that the prerequisites for effective competition in the Danish market have been secured."

"Last year, we invited market actors and stakeholders to contact us with relevant information about the planned change of the DanBred pig breeding system. We received a number of inquiries and complaints. The Danish Agriculture and Food council has made quite fundamental ad-justments to the originally proposed reorganisation, which we had signif-icant concerns about. We have focussed on making sure that customers in Denmark, who purchase DanBred products, would not be worse off."

The DCCA has decided to close the case regarding the planned change in the business structure of the Danish pig breeding system, DanBred. The DCCA estimates that further investigations would not be reasonable in relation to the expected outcome and impact on competition. However, this does not prevent the DCCA from reopening the case and its various aspects in the future.

In 2015, the Danish Agriculture and Food council informed the DCCA of a planned reorganisation of DanBred. The Danish Agriculture and Food Council presented the proposed reorganisation in 2016, including terms of contracts with the system’s actors stipulating that all sales of DanBred breeding material should be concentrated in one single joint sales channel.

Based on the proposal and a number of complaints, the DCCA opened an investigation. Since then, the DCCA has conducted several market inves-tigations of the proposed new structure of DanBred.

In July 2017, the Danish Agriculture and Food council announced that it would adjust its originally proposed reorganisation. The purpose of the adjustments was overall to ensure that the prerequisites for maintaining effective competition between DanBred actors in Denmark would remain intact.

The Danish Agriculture and Food council has since implemented the ad-justments and has furthermore prepared a Letter of Intent which describes the main conditions for the future DanBred system.

On that basis, the Danish Competition Council and the DCCA have decided to close the case.

For further information, please contact Communications Manager at the DCCA, Hanne Arentoft, on tel. +45 4171 5098.

Picture of Jakob Hald in print quality 

29. September 2017