Danish Crown: Record turnover for Friland
Ecology and good animal welfare are still growing at the Danish Crown subsidiary Friland. For the financial year 2021/22, the company can present a record turnover of DKK 1.06 billion, which is six percent higher than the previous year. It is the first time that the company has reached a billion kroner in revenue.
This is despite the fact that inflation and falling consumption over the past six months have clearly left their mark on consumers' purchasing patterns. A lower available amount has led some consumers to buy less organic.
"In the past six months in particular, we have navigated an extremely challenging market, because inflation and falling amounts available have changed consumption patterns. On the other hand, the first part of the year was better across several markets, so the year has really been a roller coaster ride," says Claus Hein, the CEO of Friland.
The progress in Friland can be found particularly in the organic sector, where sales of both organic pork and beef have grown. The sale of organic beef has grown by 17 per cent, while the progress of organic pigs is five per cent. However, the past six months have shown that consumers either buy cheaper organic cuts or less organic goods in general, but this does not cause Friland to reduce its ambitions.
"We have no doubt that the demand for ecology and animal welfare will increase again, but it is impossible to predict when that will happen. We work hard to develop both our existing and new markets. It is not an easy task, but we are working hard and we are ready to seize the opportunities that arise in the market," he says.
In the most recent financial year, Friland paid out a total of DKK 327.5 million including residual supplements to suppliers, which is a new record in the company's 30-year history. It is absolutely essential for Friland to be able to secure a sustainable economy for the suppliers, so that both the company and the concepts can be developed. Despite a record high payout in current supplements and residual supplements, it has unfortunately not been enough to cover the suppliers' increasing production costs.
"Friland stands strong in the minds of many consumers. Although ecology is currently challenged, we know that consumers generally want food that comes from Denmark and focuses on good animal welfare. We at Friland guarantee that. We work broadly to increase the degree of refinement so that we reach a broad target group of consumers and customers. We are holding hands and we have the support of suppliers to respect and follow the strategic plan that the board adopted last year. It may take longer to launch the strategy, but the ambition to grow Friland remains unchanged," says Claus Hein.
Group CEO of Danish Crown, Jais Valeur, is particularly pleased that Friland has managed to increase turnover in a challenging market. According to him, it shows Friland's strong brand in the organic market.
"Friland has an important role in Danish Crown, and therefore it means a lot to us that Friland continues its strong development at a time when external factors make it more difficult to sell the products both in Denmark and abroad. We firmly believe that Friland also has a strong position in the future, and we will also support that development from the group," says Jais Valeur.
After the financial year 2021/22, suppliers of organic pigs will be paid a residual supplement of DKK 0.50/KG, while suppliers of organic cattle and FREE-RANGE PIGS will receive DKK 0.80/KG. In addition to the residual supplement, Friland's suppliers also receive Danish Crown's residual payment of DKK 1.30/KG for pigs and DKK 1.35/KG for cattle.
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