Danish Crown: The stability mask is reversed
When it was decided in April to close the slaughterhouse in Ringsted, Danish Crown's board simultaneously activated the stability mask, so that the cooperative owners could no longer increase their supply of pigs. The closure of Ringsted has now been completed, and therefore it will once again be possible for the cooperative owners to increase production.
On the other hand, downward adjustments to the A quantity are closed with immediate effect, with the aim of ensuring stable supplies to the slaughterhouses in the coming period.
"We have continuously had inquiries from owners who would like to deliver more pigs, and we can already make agreements with them from today, so that they can deliver more pigs from the new year. On the contrary, it is no secret that the export of piglets has been large, and we have had some announcements over the past year. That is why we are now turning the handle in the opposite direction for a period of time, because we believe that in the short term this is one of the ways to ensure the best possible utilization of the capacity at our slaughterhouses",says Asger Krogsgaard, chairman of Danish Crown.
The rules for the stability mask are adjusted at the same time, so that changes to the A quantity must be made with five working days' notice. In other words, this means that from now on the last five days' changes in the A quantities will be automatically canceled when the board has given notice that the board activates the stability mask in one direction or the other.
The five-day notice is introduced to protect Danish Crown against sudden and drastic fluctuations in the A quantity, which could, for example, be triggered by an outbreak of disease that completely or partially closes the export of piglets.
"When more than half of the pigs born in Denmark are exported, we as a company are forced to have rules and tools in place that protect the company and thus the owners as best as possible against unnecessary additional costs. We saw in 2020 how the entire group of owners came to bear the costs when we had to increase capacity after the outbreak of African swine fever in Germany, and that must not happen again", says Asger Krogsgaard.
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