Danish Crown closes location due to too high pig price

Danish Crown stops slaughtering pigs in Teterow (Mecklenburg-Western Pomerania) in Germany. The Danish meat company does not have an export license for this slaughter location for China, which means that the pigs are too expensive to get on the hook. 

The slaughter site in Teterow has only been owned by Danish Crown for 2 years. Despite various efficiency measures, it is not possible to make the location profitable. The problem is that the slaughter location is not eligible for an export license to China. This is because cattle are also slaughtered and that is not allowed according to Chinese protocols.

Pig price too high 
Because the by-products cannot be exported to China, Danish Crown cannot complete the 'square value'. Especially now that pig prices have risen sharply in recent months, as a result of the improving Chinese demand. That is why the Danish meat company has decided to house the pigs at the slaughter location in Essen from August, where the pork can be exported to China.

The location in Teterow is relatively small with approximately 10.000 pig slaughters per week. This does not alter the fact that the decision is bad for the relevant suppliers in Mecklenburg-Western Pomerania. They are now forced to cover longer transport distances.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.