Lantmännen invests in ecological chicken production

Lantmännen is making the move into ecological chicken production through the acquisition of 35 percent of the shares in Bosarpkyckling AB. Bosarpkyckling is Sweden’s only producer of ecological chicken.

The consumption of chicken is increasing in both Sweden and Denmark. Today the consumer wants lean meat that is both locally-produced and ecological.
“At present we are market leading in conventional chicken via our brands Kronfågel in Sweden and Danpo in Denmark. We see making the move into ecological chicken production as a natural step in our efforts to meet the demands and wishes of our customers,” explains Per Strömberg, Group President and CEO of Lantmännen.

Bosarpkyckling is Sweden’s only producer of ecological chicken and it accounts for just over 1 percent of the total chicken market in Sweden. The company started in 1999 in Blentarp, Skåne and has an annual growth of almost 15 percent. Their chickens are both ecological and KRAV-certified and are sold chilled in both Sweden and Denmark. Ecological chickens are reared on KRAV-certified feed and range outdoors in so-called mobile houses. It takes twice as long to rear an ecological chicken as a conventional one.
“Ecological chicken is not just a passing trend: it’s here to stay. The response from our satisfied customers assures us of this. In order to satisfy the increasing market we need to expand further and for that we need an organisation with “muscles” and first-rate logistics,” explains Claes Alwén, the owner of Bosarpkyckling.

This is where Lantmännen comes into the picture and buys a minority share in the company. A joint strategy is being devised and the idea is to establish more breeders.
“This is an interesting market to work in. Bosarpkyckling is a fine company with an established customer base. We can provide the company with the opportunity to grow by contributing our expertise, our distribution and our reliability of supply,” says Peter Rasztar, Business Area Manager for Lantmännen Kronfågel Holding.

The chickens will be slaughtered in a small-scale separate slaughterhouse and not in any of Kronfågel’s slaughterhouses. The ecological chickens will be sold under the Bosarpkyckling brand, but there are other potential solutions for the future as volumes increase. For the time being Brosarpkyckling’s customers and suppliers will not be experiencing any changes to their existing routines.

The transaction includes an option for Lantmännen to acquire the majority of shares in the company.

For further information, please contact:

Per Strömberg, President and CEO, Lantmännen, tel:  +46 (0)703-85 11 91
Peter Rasztar, Business Area Manager Lantmännen Kronfågel Holding, tel: +46 (0)702-60 06 46
Claes Alwén, owner of Bosarpkyckling, tel: +46 (0)70-58 58 000

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