Progress in Friland driven by exports and a strong position in Denmark
Consumer demand for organic meat has really returned after a decline in 2021 and 2022. Therefore, the first half of 2024/25 has been good for Friland. Revenue has increased by four percent despite a decline in slaughterings of four percent across Friland's three concepts.
The increase in revenue is driven by a strong increase in sales of organic pork, which is strong in the Danish retail trade. This is largely driven by a major new collaboration on retail-packed organic pork and a new cold cuts series on the shelves of most Danish supermarkets. At the same time, there are solid export sales, which contribute to the increase.
"It has been six months where we have seen positive developments across a broad front. We have a very good collaboration with all our key customers, and with the new cold cuts series we have strengthened our presence in the Danish refrigerated counters. At the same time, we have seen increasing demand in almost all export markets, and overall this means that we have been able to pay a fair price to our suppliers", says Søren Tinggaard, CEO of Friland.
The free-range concept Organic Cattle maintains the same turnover as the first half of 2023/24, even though the number of slaughters has decreased by three percent. The market for beef and veal is generally characterized by low supply, and this has driven up prices. Also for organic.
Therefore, Søren Tinggaard is satisfied with the first half of 2024/25 and points to progress in Danish retail and good exports, especially to Germany.
"Demand for organic beef has increased, even though prices have been rising because there have been fewer animals. It is both Danish and foreign consumers who demand organic beef, and therefore we have been able to maintain our turnover, even though the number of slaughters has decreased", says Søren Tinggaard.
In Friland's only non-organic concept, FRILANDSGRIS, revenue will decline in the first half of 2024/25. However, the decline in revenue is smaller than the decline in the number of animals slaughtered, which is positive.
"For FRILANDSGRIS, we have really good collaborations both in Danish retail and foodservice. The number of slaughtered animals has fallen by 10 percent in the first half of 2024/25, but revenue only fell by five percent. The challenge for FRILANDSGRIS is the utilization rate of the pig, and we are working to raise that. Overall, we are in a good place in Friland right now, but we must continue to optimize our sales so that we ensure our suppliers an income that enables them to continue developing their farms", says Søren Tinggaard.
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