Other – By-products
This category includes the sale of by-products mostly intended for purposes other than human food consumption, such as feathers, offcuts and offal. These products are used in the production of, for example, animal feed and biofuel, in line with Scandi Standard’s ambition to utilise and increase the value of the whole animal, because this minimises food waste, lowers the carbon footprint and increases profitability. A considerable portion of the by-products we produce are further processed in our jointly owned company, Farmfood. The ability to use surplus products is vital to our sustainability drive as it reduces production waste to almost zero. Our ambition is to utilize a chicken entirely in any way possible.
Changing market requires flexibility
Costs for handling and logistics have increased faster than the value of the products in some of the segment’s markets, and we have had to adapt products and logistics solutions to both new and existing customers. At the same time, there has been increased demand for cheap protein and biofuel, which has benefited our financial performance.
New food products – for human consumption
Some of the by-products can also be used for ready-to-eat products. For example, machines can now use all the meat from the bones, and the result is meat in smaller pieces which are suitable for, among other things, chicken sausages. We are working proactively in this area together with several strategic partners, to create better and more inexpensive alternatives to traditional meat products, to make quality protein accessible to more people – and make production more sustainable.