Danish Crown

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Danish Crown fires hundreds of deboners

16 September 2022 - Wouter Baan - 1 reaction

The Danish cooperative slaughter company Danish Crown is going to make significant cutbacks in its workforce. The reason for this is that the supply of pigs is so tight that there is an overcapacity in two slaughterhouses. About 350 deboners will be out on the street, the company said. 

Danmark Statistik announced in July that the pig population has decreased by 7,5% to 12,18 million animals. In absolute terms, this is 991.000 fewer animals compared to last year. The number of finishers decreased by 8,2% to 2,79 million animals. The sow herd has also shrunk: by 6,5% to 1,19 million animals. Due to this clear cut, Danish Crown is struggling with overcapacity. The company speaks of a difficult situation that is likely to last.

As in the Netherlands, the Danish pig sector is characterized by the necessary outflow as a result of an aging population. In addition, pig farmers are currently reluctant to increase production. Although selling prices have improved considerably in recent months, they are simultaneously confronted with sky-high feed costs. 

The significant decline in animal numbers is, incidentally, only slightly visible in the slaughter figures. So far, 1,2% fewer pigs have been slaughtered in Denmark this year compared to the same period last year. But the shortage is likely to increase further in the coming months and Danish Crown wants to anticipate this now. On balance, 350 slaughterhouse employees will be laid off, spread over the locations in Saeby and Ringsted. A social plan has been drawn up for these employees.

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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.
Comments
1 reaction
Subscriber
farmer 16 September 2022
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/varkens/ artikel/10900653/danish-crown-dismisses-hundreds of deboners]Danish Crown dismisses hundreds of deboners [/url]
As long as pigs don't stay down due to staff shortage
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