Danish Crown is responding to what has been a difficult two years for Danish slaughter pig manufacturing, the place the availability of fewer pigs for slaughter in Denmark has made it tough to deal with potency ranges on the workforce’s Danish abattoirs. Danish Crown is subsequently decreasing the choice of manufacturing websites in Denmark and concentrating the crowd’s long run investments with the purpose of processing the homeowners’ pigs into merchandise comparable to bacon and pepperoni slightly than essentially being a provider of uncooked fabrics to consumers international.
The proposed determination to near the abattoir in Ringsted will consequence within the lack of nearly 1,200 jobs, whilst approx. DKK 250 million will probably be made to be had for different investments over the following 3 years, and which is predicted to create as much as 300 new jobs in Horsens, Herning, Vejen and Blans close to Sønderborg.
The adjustments will consolidate Danish Crown’s place because the main meat-based meals corporate in Europe.
Turbocharging the transition
The approach to building up the share of processed merchandise used to be first presented within the workforce technique Feeding the Long run in 2021. Right here, Danish Crown reconsidered its concept about reaching expansion via slaughtering extra pigs, and as a substitute made up our minds to base its expansion on expanding the price of Danish red meat throughout the manufacturing of processed meals and extra center of attention on sustainability.
As its first main step, Danish Crown has since invested nearly DKK 1 billion in a brand new and cutting-edge bacon manufacturing unit close to Manchester in the United Kingdom, the place its annual manufacturing of greater than 200 million packets of bacon has already been bought to 3 massive British consumers.
Since 2021, the choice of pigs being despatched for slaughter in Denmark has, alternatively, declined considerably, and subsequently it’s important to boost up the transition and streamline manufacturing much more so as so that you can pay the corporate’s homeowners – Danish farmers – a aggressive fee for his or her animals. The ambition is that the cooperative homeowners’ meat should both be bought as processed merchandise or exported as semi-finished items to high-price markets.
New gear being applied
In consolidating its Danish abattoir actions at fewer amenities, Danish Crown’s capability will probably be very exactly tailored to the choice of pigs which the cooperative homeowners have pledged to ship within the coming yr. Each day, that is known as the ‘A quantity’.
When deliveries and the slaughter capability are balanced, slaughter prices are minimised, which in flip will increase the price of the pigs. Subsequently, as of these days, Danish Crown is activating its steadiness instrument in an upward route. Which means the cooperative homeowners can now not regularly building up their A quantity. As a substitute, the agreed volumes are locked, so any adjustments require a understand length of twelve months. On the identical time, a steadiness deduction should be paid if deliveries vary through greater than what Danish Crown’s laws allow.
Social plan to assist staff transfer on
An important bite of the manufacturing that recently takes position in Ringsted will in long run occur at Danish Crown’s different amenities in Denmark. The gang will probably be making an investment in Horsens, Herning, Vejen and Blans close to Sønderborg, so Danish Crown expects there to be sufficient paintings for the Ringsted staff who’re in a position to take a task at one of the vital corporate’s 4 different places.
It’s been proposed that the abattoir in Ringsted will have to be closed in mid-September 2024.
April 18, 2024 – Danish Crown