Danish Crown's Beef Division Reports Profits

DENMARK - Danish Crown’s Beef Division reports revenue for the financial year of just over DKK 3.1 billion and a net profit of DKK 52.7 million.
calendar icon 18 November 2009
clock icon 2 minute read

Also, the Beef Division has been able to attract more animals than last year.

"These are very satisfactory results in light of the very considerable challenges which we have faced during the year. The bottom dropped out of the hide market following the financial crisis, and for a long time prices were negatively affected. The meat market has also been significantly impacted by the global financial crisis. Consumers have had less money to spend, and this has meant fewer expensive steaks and more minced meat instead. All in all, this has put prices under pressure," explains Lorenz Hansen, Managing Director of Danish Crown’s Beef Division.

Strategy bearing fruit

On the positive side, the processing department in Sdr. Felding, the slaughterhouse in Husum and the rationalisations realised under DC Future have contributed to improved overall results. And this will strengthen the competitive edge of the Beef Division in future.

"Our processing strategy is bearing fruit. The department in Sdr. Felding has, in the space of a very short time, increased its market share, and new high-quality products look set to strengthen our position further in future. Capacity has been expanded at the slaughterhouse in Husum, which is taking on more orders than previously. And throughout the organisation, focus has been on costs with a view to meeting the targets set out in DC Future," said Mr Hansen.

More animals for slaughter

The number of animals slaughtered was just over 7,500 higher than the year before. All in all, 269,472 Danish animals were slaughtered, which means that Danish Crown accounted for 57.6 per cent of slaughterings in Denmark against 57.4 per cent last year, explains Peder Philipp, Chairman of Danish Crown’s Beef Producer Committee, mentioning several new initiatives as explanations of the turning point.

"We have been in touch with several potential new beef producers through our bonus supplier scheme. And this has resulted in more animals. However, this is not the only explanation. I think that more producers are choosing Danish Crown because we have generally strengthened our relations with members through our DC Member Service activities and are offering an improved service in combination with competitive prices," Mr Philipp said.

Disbursing of supplementary payments

The supplementary payments for beef producer members will be disbursed on Thursday, 3 December. Concurrently with the disbursement of the supplementary payments, DKK 0.15 per kg will be paid into members’ accounts as part of the consolidation provided for in the Articles of Association. Members will receive their statements in the course of week 49, and members receiving their supplementary payments by cheque will receive their statement and supplementary payments on week 50.

TheCattleSite News Desk

© 2000 - 2023 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.