Danish Crown launches B-price for oversupply

Because the Danish Crown locations are being flooded with pigs ready for slaughter, the Danish meat company has decided to create a B prize. This means that the oversupply will be settled at a lower price level from December.

The oversupply of pigs at Danish Crown is a result of the outbreak of African swine fever in Germany since mid-September. As a result, many more Danish pig farmers offer their pigs in their own country. Exporting to Germany is less interesting from a price point of view due to the enormous price drop there. The supply is now so great that there is too little slaughter capacity, there is reportedly a slaughter backlog of 350.000 finishers.

Danish Crown has therefore decided to settle the extra pigs offered at a lower price, so that the normal supply is not (or less) affected by this. From November 30, the cooperative slaughterhouse will offer a discount of 142 Danish kroner per pig, which translates into approximately €20. The deduction is provisionally determined per month and can vary.

To eliminate the slaughter backlog, Danish Crown will also increase the slaughter rate. Pigs will soon be slaughtered in the evenings in one of the slaughterhouses. This should ensure 14.000 more pigs on the hook each week. The intention is also to hire 400 additional employees before the turn of the year.

Press pig price
Recently, 2 Danish Crown slaughter locations are no longer allowed to export to China. This is putting more pressure on the European meat market, all the more so because German slaughterhouses have also been denied access to lucrative China. The Danish slaughterhouse indicates that the cold stores are full, which means that a lot of pork currently has to be sold as 'fresh' in Europe. This also explains the recent price pressure in the Netherlands.

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

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