Solid demand means progress at Danish Crown Beef
Good demand from consumers and customers in Europe, and supported by a lower supply of cattle, brings Danish Crown Beef's turnover to DKK 3.1 billion (1 DKK = 0,13 EUR), in the first six months of the financial year 2022/23. This is an increase of seven percent compared to the same period in 2021/22.
"We have progressed quite solidly through the first six months of the financial year. There have been reasonable sales prices both on the domestic market and on the export markets. This has helped drive up turnover, just as we are well supported by strong operations in our German slaughterhouses and stable earnings in Scan-Hide", says Finn Klostermann, CEO of Danish Crown Beef.
The increase in turnover has helped to ensure that Danish Crown Beef has on average paid the unit owners 19.8 percent higher in the first six months of the financial year compared to the same period in 2021/22. Specifically, farmers have been paid DKK 32 per kilo on average, compared to DKK 26.8 per kilo last year.
"The settlement to the Danish farmers is currently at a reasonable level in a European perspective. Here, at the entrance to our high season, the summer, we see a stable settlement, and there is reason for optimism in terms of maintaining our competitiveness in the market", explains Finn Klostermann.
One of Danish Crown Beef's strengths is the strong value chain, from the animals being collected from the cooperative owners to the products being delivered to the customers. There is good cooperation between sales and production, which mutually understand how to support each other and show the necessary flexibility.
"We have a good team, where everyone knows their tasks and delivers a strong effort. We must constantly work to maintain and develop this, so that we are at the same time an attractive workplace and deliver a competitive settlement to our owners", says Finn Klostermann.
The ambition is to continue the revenue growth in the beef division. Among other things, this must be done through further processing and specialisation, which is the focal point of Danish Crown's strategy, Feeding the Future.
"We are in a very good place in Danish Crown Beef and therefore work can be focused on redeeming our strategy in the coming years. Because of the raw materials we have available, we can become even better at adding value, so we will have a firm focus on our objective, value over volume. That is why we want to focus our investments on innovation and marketing to a greater extent", says Jais Valeur, Group CEO of Danish Crown.
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