Danish Crown: Now there are more pigs on the way
The combination of a number of concrete initiatives and a significantly higher price has prompted a number of Danish Crown owners to adjust their A-quantity upwards and thus deliver more pigs for slaughter in the coming year.
"This is really positive news, and it is the first time in the group's recent history that we can write down a forecast by this much. Considering our total slaughter capacity, we could actually be in a scenario in 12 months where we have to report being sold out. We were not there just a few months ago", says Group CEO, Niels Ulrich Duedahl, emphasizing that the transformation of Danish Crown has only just begun.
The original forecast for 2025/26 was 7.9 million pigs. Instead, it is now very likely to land on 8.4 million pigs and even with some probability on 8.9 million pigs, out of a total slaughter capacity of 9.4 million pigs. The positive development is due to several things. First and foremost, the targeted and hard work across the entire group to get the listing up.
"We have closed some of the gaps where we lost money, we have implemented major savings across the group, and we have returned to a competitive listing level. At the same time, we have seen a positive reception for the dialogue that we have opened with our owners about a new ownership model, and for the other initiatives we have launched to get more pigs. All of this together means that we appear to have turned the raw material flow in the right direction", says Niels Ulrich Duedahl.
The many different new initiatives are now over, and that in itself may help to bring the last pigs home.
"Things are going really fast right now, and I also tell all the farmers I meet that if you are considering increasing your quantities, you need to do it now, because there will be no more new supplements. On the contrary, I would not rule out that in a few months we may have to close down some of the different schemes if the supply of raw materials continues at the expected pace", says Niels Ulrich Duedahl.
The positive development does not mean that Danish Crown's recovery is over, quite the opposite. But with the more optimistic commodity forecast, the path is now more paved for the transformation to succeed.
"We have talked a lot about raw materials, and that is precisely because it is so crucial for us to be successful with all the other things that need to be done. If we get fewer raw materials, our costs per kilo will be far too high, and then all our various efficiency improvements will make no difference. That is why it is so important for the pace of our continued transformation that we now appear to have reversed the negative development", says Niels Ulrich Duedahl.
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