Danish Crown significantly increases subsidies for stable construction
With the new model for new housing allowance, Danish Crown wants to strengthen the incentive for modernization and future-proofing of Danish pig production.
In recent years, the Nyhus supplement has been 20 øre per kg for a period of five years, but now a stepped model is being introduced, where the supplement is 80 øre per kg for the first 12 months, and then decreases by 10 øre annually, so that it ends at 40 øre per kg in year five.
This gives an average supplement of 60 øre per kg in the first five years a new barn is in operation.
"It is absolutely essential that we get the construction of new slaughterhouses underway in Denmark, because that is the way to ensure competitive production and thus thousands of jobs in the long term. At the same time, we also know that new barns with the latest technology contribute to reducing the climate footprint of production, so it makes perfect sense for us at Danish Crown to take even greater responsibility and support those unit owners who are willing to invest and think long-term," says Niels Ulrich Duedahl, Group CEO at Danish Crown.
The new model means that a unit owner with newly built stables can obtain a total supplement corresponding to up to 25 percent of the investment, if the construction costs can be kept at 4,000 kroner per pen. In addition to the new house supplement, Danish Crown also offers to contribute with financing of 650 kroner per pen (4.8% interest per year), which is repaid over five years via the balance payment.
And there are high expectations that the new addition can boost barn construction and modernization.
"We are actually experiencing a great interest in building new properties among our unit owners. With the increased supplement, we hope to be able to make it possible for many more people to realize their plans. In short, it is an investment in the future, both for the individual producer and for the entire Danish Crown," adds Søren Tinggaard, Director of Owner Service at Danish Crown.
In order to enter into an agreement on the new house allowance, it is a prerequisite that construction begins no later than six months after the conclusion of the agreement.
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