Danish Crown allows new suppliers again

Danish Crown will again accept pigs from new suppliers in Denmark, the company reports today. Last November, the largest Danish slaughterhouse announced that it would temporarily not allow new pig farmers due to the slaughter capacity that was under pressure.

In Denmark, too, the 'plug' of heavy pigs seems to have been eliminated. Danish pig farmers have been offering more pigs domestically since the outbreak of African swine fever in Germany. At the same time, however, Danish slaughterhouses also struggled with the significant impact of corona outbreaks, which put pressure on slaughter capacity. The larger domestic supply could therefore not be fully placed and processed.

New customers admitted from waiting list
Danish Crown CEO Erik Bredholt is pleased that new companies from the existing waiting list can join as suppliers. Bredholt says he expects an increasing number of companies to start supplying pigs to Danish Crown in the coming months. However, it will happen at such a pace that the provision of services to existing suppliers will not be jeopardized. 

Suppliers approached by the slaughterhouse should be able to start supplying within three months. If they are unable to do so due to existing delivery obligations, the company will be placed back on the waiting list. With this, Danish Crown wants to ensure that the slaughter capacity is used as effectively as possible.

Whether Danish pig farmers are immediately warmed up to start supplying at the moment is open to question. For the time being, the explosive rise in pig prices has only been followed to a very limited extent in Denmark. Here the pig price has increased by about €0,10 per kilo of slaughtered weight in recent weeks. The Danish Crown abattoir recently also complained about what, in the eyes of the company, was too much rapidly rising purchase quotes for pigs.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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