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TOWARDS an INTERNATIONAL FOOD CLUSTER in DENMARK an Analysis of the Food Sector in Central Denmark Region

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TOWARDS AN INTERNATIONAL FOOD CLUSTER IN DENMARK An analysis of the food sector in Central Denmark Region Glenda Napier and Henrik Bjerregaard, REG X – The Danish Cluster Academy CONTENTS 3 Foreword 4 Summary 5 About the analysis 6 Introduction 9 Method and scope 11 Areas of business specialisation within Central Denmark Region’s food sector 17 Key figures for food activities in Central Denmark Region 20 The food activity ecosystem and stakeholders in Central Denmark Region 30 Development of a strong cluster 33 Recommendations 37 Appendix Idea & layout: Trine Vu, www.hungogvu.com Vu, Trine Idea & layout: TOWARDS AN INTERNATIONAL FOOD CLUSTER IN DENMARK // REG X | 2 FOREWORD ince 2007, the Central Denmark Growth Forum has ness development effort is to make a difference to business, made big efforts to develop strong development en­ including the food industry. vironments and boost the innovation competencies S of food companies. This has taken place in recogni­ With this smart specialisation analysis, focusing on cluster tion of the great business-political significance of the food development, Central Denmark Region, Agro Food Park, Fu­ industry for the region and the need for companies to be ture Food Innovation and REG X have taken the first step adaptable and innovative in view of developments on the towards developing the future regional action plan for the global market. Public and private stakeholders have sup­ food sector – an action plan set in a national context with ported the initiative. In this, the establishment of Agro Food a clear global direction. We will, of course, also participate Park and Future Food Innovation has played an important in the exciting and necessary work underway within Food­ role in highlighting the innovative power of Central Den­ best, which aims to create a strong position for Danish food mark’s food environment. companies and knowledge institutions within a common European innovation and research network – a Food4Future Now we are getting underway with the next challenge – to knowledge and innovation community (KIC). clarify, prioritise and develop the areas where we hold a particularly strong position and, as such, global competitive We believe that smart specialisation is the key to creating advantage. This is not something the region can do alone. regional growth and new jobs within a strong, national food It requires commitment and strong cooperation between cluster. the food industry, knowledge environments, educational institutes and authorities – regionally, nationally and inter­ nationally. Bent Hansen, chairman of the Regional Council and chair­ man of the Central Denmark Growth Forum The agenda is ambitious, but we are ready to accept the challenge and make a real strategic contribution to a strong Jan Mousing, chairman of Agro Food Park and managing di­ Danish food cluster. In that connection, we are pleased to rector of the Danish Knowledge Centre for Agriculture note that the Danish Government, via the Growth Partner­ ship Agreement with the Central Denmark Growth Forum, Lars Visbech Sørensen, chairman of the Future Food Innova­ has recognised the special role of Central Denmark within tion (FFI) steering committee. Consortium behind FFI: Agro the Danish food innovation environment. The government’s Business Park, AgroTech, VIFU (Knowledge Centre for Food Growth Team for Food (April 2013) reiterates this recog­ Development), Danish Technological Institute and Aarhus nition in its recommendations for declaring East Jutland a University (MAPP and AU FOOD) Danish food powerhouse. Lotte Langkilde, director of REG X – The Danish Cluster This is fully in line with the assessment of OECD in its review Academy of innovation work in Central Denmark Region and the Re­ gion of Southern Denmark (OECD, 2012). Here, OECD calls May 2013 for a greater division of labour between regions if the busi­ THE EUROPEAN UNION The European Regional Development Fund Investing in your future TOWARDS AN INTERNATIONAL FOOD CLUSTER IN DENMARK // REG X | 3 TOWARDS AN INTERNATIONAL FOOD CLUSTER IN DENMARK An analysis of the food sector in Central Denmark Region SUMMARY he Danish food industry will face major opportunities and agricultural research, process technology and the mar­ for global growth in the coming decades. To develop ket. Knowledge organisations can play a significant role in the strong Danish position within the food sector, it is cooperative initiatives within the cluster by ensuring their Tcrucial that Denmark’s special competencies within agricul­ unique knowledge gains access to companies, benefiting ture and food be brought into play in the global competition the food sector’s development. New, young enterprises for innovation, entrepreneurship, growth and employment. with great growth potential are on the way, working within ‘hybrid areas’ at the interface between food and climate, It cannot be expected that future growth in food sector em­ environment and health. They bring innovation to the food ployment will come from areas that have undergone major industry but are in need of closer cooperation with the large, optimisation in recent years or solely from known nearby established companies in order to optimise their contribu­ markets. For this reason, it is important to strengthen tion to innovation and growth. existing areas of food business specialisation and develop new areas of specialisation at the interface between food The extent of the cooperation between food industry players and climate, environment and health. It is within such new can be further strengthened in a future cluster coope ration. ‘hybrid areas’ that global demand for innovative solutions is Food companies in Central Denmark Region have a growing expected to increase. interest in increased cooperation with an emphasis on open innovation. Strategic initiatives in a series of larger compa­ The quantitative analysis shows that a large proportion of nies open new opportunities for such cooperation. Large, employment, turnover and export within the Danish food established companies can secure access to larger markets industry are concentrated at food companies based in Cen­ for small, innovative growth companies, which, in return, tral Denmark Region. It also shows that there are a number supplement the large companies through their innovative of particularly strong areas of food business specialisation in power. the region. These include food analysis and advice, proces­ sing of dairy products and ingredients, meat processing and Following the identification of areas of business specialisa­ ingredient production. As the Danish food cluster is one of tion in the food sector, Central Denmark Region can gain the leading clusters in the world, it follows that the business from promoting itself as an active partner in national and in­ specialisations within Central Denmark Region can be cha- ternational cooperations. Within the identified areas of spe­ racterised as world-class and with great growth potential. cialisation, players from Central Denmark Region would be the natural drivers of a Danish food cluster. In other areas, The qualitative analysis shows that there is a big interest it is important that the region and food stakeholders join among companies and other cluster stakeholders to deve­ initia tives where others have particular business specialisa­ lop a strong food cluster. Through entering a close cluster tions and core competencies. In this way, the Danish food coope ration, large established companies, entrepreneurs, industry can develop in a number of important areas. small growth companies and knowledge organisations can, under the right conditions, complement each other’s To exploit the potential for business growth and synergies strengths and increase their innovative power. and, at the same time, strengthen cooperation with re­ search and knowledge institutions, the establishment of a The region is home to many large, established companies formal cluster cooperation and cluster organisation is re- with a strong market position and sales organisation. But commended. This can release the potential and contribute they need new input to step up their innovation capacity. to food industry innovation, growth and employment in The region’s high concentration of knowledge organisations Central Denmark Region and the rest of Denmark. includes particular competencies within primary industry TOWARDS AN INTERNATIONAL FOOD CLUSTER IN DENMARK // REG X | 4 ABOUT THE ANALYSIS entral Denmark Region, Future Food Innovation, strategy, an action plan for Central Denmark’s efforts within Agro Food Park and REG X have come together in the food sector and a starting point for the second genera­ an analysis partnership with the aim of establishing tion Future Food Innovation Initiative. It also contributes to Ca fact-based foundation for developing the food industry in the work of positioning Agro Food Park in an international Central Denmark Region. The analysis has been prepared context. Finally, the analysis serves as a pilot project for and managed by REG X ­ The Danish Cluster Academy. working with smart specialisation in Central Denmark Re­ gion. The purpose of the analysis is a fact­based mapping of food specialisation areas within Central Denmark Region with a It is the first time that a survey of regional specialisations view to future cluster development and “smart specialisa­ and core competencies in the food sector has been conduc­ tion”. This includes identifying key stakeholders, initiatives ted. Combined
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