Danish farmers are losing money in a historically difficult market
However, the first half of the year has been characterized by a challenging market for pork, where African swine fever in Spain and pressure on pork supply in Europe have had an impact on Danish Crown's earnings. At the same time, it has created falling prices for unitholders, with the current level being unsustainable.
Danish Crown comes out of the first half of the year with an operating profit of DKK 631 million compared to DKK 1,325 million in the same period last year. If you adjust for a changed listing policy – which continuously sends more money to the farm – the operating profit for the first half of the year was DKK 736 million in the previous accounting period.
Revenue decreased by 2.6 percent to DKK 31,605 million, which can be attributed to a combination of lower market prices globally and a decline in the total volume sold in the first half of the year.
"Improved competitiveness and better cost management confirm that we are heading in the right direction. We are meeting our expectations for the result, while the difficult market situation, characterized by supply pressure, has put pressure on our gross profit, which has fallen from 14.2% to 11.8%," says Group CFO at Danish Crown, Anders Aakær Jensen.
"We are grateful for the great effort of the employees in the first half of the year, which is the reason for the improved competitiveness, but we cannot be satisfied with the finances on the farms in the first half of the year," he says.
Measured by the price of pigs and the expected additional payment to unitholders, Danish Crown has closed some of the gap to Germany with a total improved competitiveness of DKK 468 million in the first half of the year compared to the same period last year.
On the cattle side, Danish Crown has distanced itself from Germany and the Netherlands and improved its competitiveness by DKK 1.97/kg – corresponding to DKK 64 million in total for the first half of the year.
"Despite increased competitiveness, we are fully aware that the current listing does not ensure profitability on the farms. Although Danish Crown itself has absorbed some of the decline in pork prices, it is a binding task to ensure a better financial foundation for our shareholders. The pressure on the listing for pigs only highlights the importance of Danish Crown's transformation into a more unified and efficient group," says Anders Aakær Jensen.
Danish Crown has seen optimistic trends at the group's German factory in Essen, and therefore the previous sales plans and the associated provision of DKK 183 million have been reversed. Overall, this means that the bottom line for the first half of 2025/26 meets expectations with a result of DKK 552 million against an adjusted result of DKK 351 million in the same period last year.
At the same time, Danish Crown has reduced distribution costs by DKK 88 million and administration costs by DKK 61 million.
Towards the end of the accounting period, however, the unstable situation in the Middle East affected Danish Crown in the form of higher oil and freight prices as well as emerging inflation for materials.
"We see unstable markets due to the geopolitical situation, and we - like other large companies - must navigate increased transportation costs, inflation and rising interest expenses in 2026. This challenges the effective cost management, which is part of the transformation at Danish Crown," says Anders Aakær Jensen.
On the cattle side, Danish Crown Beef delivers revenue of DKK 3,744 million, while the operating profit lands at DKK 63 million as expected. The market has maintained a high price level in Europe in the first half of the year, although with a tendency towards a slight decline towards the end of the accounting period.
However, the cattle market is characterized by very high competition for the raw material base, which is particularly pressured in Germany.
"There is a shortage of cattle across Europe, and this has resulted in spare slaughter capacity at a number of slaughterhouses. In Germany in particular, overcapacity continues to pose a significant challenge. At the same time, we see a market that has adapted to the high consumer prices. Although there is still demand for beef, we must note that beef has been squeezed by both pork and chicken meat at the beginning of 2026," says Anders Aakær Jensen.
One of the latest innovations in Japan is the marketing of U.S. beef short plate as a barbecue cu...
The number pigs covered by the group will increase by 30%, with Sofina Foods Europe joining Crans...
The agreement establishes a sanitary framework that differentiates between restricted zones and t...
