Danish Crown presented with ultimatum
On Tuesday afternoon, around 700 Danish pig producers met with management of slaughter company, Danish Crown, for a ‘crisis session’.
Previous calls by the Danish Swine Producing Industry Association, Danske Svineproducenter, for the company to increase its prices for pigmeat by 40% per kilo in two-months, were officially refused at the meeting by Danish Crown.
Management of the company considers the request as “unrealistic”.
Chairman of the board, Niels Mikkelsen, commented that the only effect of increasing prices in the current climate of oversupply would be that the competition would gain market share.
The ultimatum was presented to the company in the first place by a hundred large suppliers with the support of the industry association who threatened to cease supplying the company.
Through its actions this week, the company is running the risk of losing deliveries of around 2 million pigs on a yearly basis.
The decision has been left to suppliers as to how far they wish to go ahead with their ultimatum.
Related websites:
• Danske Svineproducenter (in Danish)
• Danish Crown
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