Danish Crown Launches Ambitious Growth Package

DENMARK - The demand for Danish pork is unabated on the key export markets. Therefore, Danish Crown is now launching a growth package to encourage farmers to invest in producing more pigs.
calendar icon 3 May 2017
clock icon 3 minute read

Danish Crown is now offering its existing members a cash growth supplement of DKK 0.50 per kg of additional pork supplied to increase the production of slaughter pigs. At the same time, a financial contribution is being offered to new cooperative members, concurrently with the possibility of supplying more welfare pigs to the UK market. The initiative is designed to reverse the increasing decline in the supply of pigs to Danish abattoirs.

"Plenty of pigs are being born on Danish farms, but far too many of them are being exported. The Danish Parliament has adopted an agricultural package and a subsidy scheme for new housing units for pigs for slaughter. These are two specific initiatives which address the needs of the sector. In support of these the initiatives, Danish Crown is now introducing its own growth package. We believe that the trend can be reversed, and that we will see an increase in activity levels at Danish Crown’s abattoirs," says Jais Valeur, Group CEO at Danish Crown.

"Danish Crown’s strength is embedded in the ability to supply continuous high quality pork products to customers around the world. This has earned us a unique position in the world market, but unfortunately this position has come under pressure. Not so much due to the competition, but because we are not always able to supply the volumes demanded by our customers," says Mr Valeur.

The new growth supplement is being supplemented with an expansion of a subsidy scheme for new producers of weaners for the UK market. At the same time, Danish Crown is ready to pay a financial contribution of DKK 0.30 per kg to new suppliers of slaughter pigs, who are also offered free advisory services.

"As I see it, this growth package is a win-win for everyone. Existing cooperative members are able to expand their production, and specialist producers of weaners can lease new housing units and start producing slaughter pigs. Finally, we are welcoming new cooperative members to Danish Crown with a cash contribution, and I actually have high hopes for these initiatives," says Erik Bredholt, Chairman of Danish Crown.

The growth package was presented to Danish Crown’s Board of Representatives on Monday evening. This means that Danish farmers can now make use of the various growth package schemes.

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