News Pork
Strong profit increase for Danish Crown
The Scandinavian meat processor Danish Crown has made a record profit over the past six months. The profit increase of 46% compared to last year (2018/19) is, according to the company, the best result ever achieved.
The increase in profits, according to Danish Crown, is largely due to the sale of pork to China at good prices. In the past six months, turnover increased by 18% to €4,2 billion. Net profit even increased by 46% to €186 million.
China and local
Danish Crown thus benefited greatly from the enormous Chinese (pork) meat demand, among other things, but there was also a lot of demand for the products locally. The markets in Sweden, Poland, KLS Ugglarps and Sokolow are marked by a strongly increasing demand for locally produced products. This made a positive contribution to the increase in profit.
The profit for Danish Crown could probably have been even greater if the beef and veal market had also grown. Although this market remained stable, prices were relatively low. According to the meat processor, beef and veal prices did go up, until the corona virus threw a spanner in the works.
Corona crisis
Unfortunately, the 'golden' period ended a bit less rosy for Danish Crown, as the corona virus reared its head. This creates uncertainty in the current market, also for the Danish meat processor.
Jorine Cosse
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