Five new initiatives will ensure Danish Crown has more pigs
High capacity utilization at the slaughterhouses is a crucial part of turning the tide at Danish Crown. The board of directors has therefore adopted a number of new initiatives to make it more attractive to send pigs to the company's slaughterhouses.
"The new initiatives aim to increase the supply of pigs in both the short and long term. In the short term, more pigs will maintain our efficiency, and thus our ongoing earnings. In the long term, it is absolutely crucial for Danish Crown to have a stable amount of raw materials, which is the basis for the healthy operation of our slaughterhouses for the benefit of our owners and customers," says Niels Duedahl, Group CEO at Danish Crown, and continues:
"We have made no secret of the fact that we need support from farmers if we are to secure Danish pig production in the long term. With the five initiatives, we are trying to make it more attractive for both new and existing suppliers to support Danish Crown".
The new measures are primarily financial incentives for farmers who either establish themselves or expand their production. In addition, it will be easier for non-participating owners to deliver a portion of their pigs to Danish Crown during an agreed period
The five new initiatives:
Heavy pig contract
Danish Crown offers both new and existing unit owners the opportunity to sign a heavy pig contract (delivery of pigs with a slaughter weight of 95.0 kg. – 114.9 kg.). The heavy pig contracts must contribute more kilos. The prerequisite for entering into the contract is that the number of pen spaces for slaughter pigs is increased so that the A-quantity is at least unchanged.
Growth allowance
Danish Crown is offering a growth supplement of 40 øre/kg. applicable for the financial year 2025/26. This replaces the current growth supplement 2 from the financial year 2024/25. The growth supplement is given to current unitholders who increase their A-quantity after 1 March 2025, and to new unitholders.
Contract pigs
Danish Crown offers non-unit owners the opportunity to deliver a portion of their pigs as contract pigs (trial pig scheme) to Danish Crown for a period of up to 12 months. The delivery agreement does not entail ownership rights.
Subsidies for renting stables
Danish Crown is launching a new subsidy that can be given to both new and existing unit owners if they rent an empty barn. The subsidy amounts to DKK 35 per pig delivered and is granted in the period from March 1, 2025 to September 30, 2027 for a rental agreement for all or part of the period.
Coverage contribution guarantee for new, younger unit owners.
Danish Crown is introducing subsidies for the rental of slaughterhouses through a contribution guarantee for new unit owners under the age of 40. The contribution guarantee applies up to a contribution of DKK 140/pig, with a maximum payout of DKK 100/pig.
In addition to the new initiatives, work is underway on additional initiatives that can help ensure stable supplies in the long term.
"We are in the process of transforming the company, and the most important measurement point for us is that we restore our competitiveness on the stock exchange. We must once again be the slaughterhouse that pays the best price for pigs in Denmark, because that is what our shareholders can rightly expect from us. We have already pulled several major levers internally in the company, but in order to continue development, it is essential that we have a stable raw material base", says Niels Duedahl.
Agreements can be made on the new initiatives from this week, and Danish Crown Owner Service is ready to help both existing unit owners and other interested parties with more information about the measures.
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