News Pigs
Danish Crown to increase capacity again
Danish Crown plans to expand its slaughter capacity in Denmark again. The company seems to have the corona vicissitudes under control. Since last autumn, the supply of pigs was too large for the capacity and the company even decided to B-price to enter the oversupply.
The oversupply is now definitely a thing of the past and Danish Crown will even accept pigs from new suppliers again. Last autumn, an increasing supply of pigs affected a reduced slaughter capacity. Delivery to slaughterhouses in Germany was no longer interesting for Danish pig farmers because of the abruptly lower prices there. This was caused by African swine fever (ASF) in Germany. Danish pig farmers therefore offered more animals to Danish slaughterhouses. However, slaughter capacity was under pressure due to measures to contain the spread of the corona virus. This ultimately resulted in a slaughter backlog of 1 week, that is approximately 350.000 animals.
In the meantime, this backlog seems to have been eliminated and additional animals can be accepted again. For this, 200 extra loading times had to be planned at farmers every week and 500 extra people were hired for work at the slaughterhouse.
Look ahead
According to Danish Crown, there would be 70 new suppliers on the waiting list. These pig farmers could supply 250.000 to 350.000 pigs on an annual basis. Danish Crown will now carefully start admitting these suppliers. The Danish butcher can probably put the pigs to good use to meet the lucrative Chinese demand. Last year, the company announced in the broken 2019/2020 fiscal year a record profit.
Steve Wissink
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