Randers, 12 May 2010
Danish Crown’s Beef Division has cut costs, improved profitability and been able to attract more animals for slaughter.
At a meeting in Cattle Forum today, Danish Crown’s Beef Division reported very solid and better than budgeted interim results which reflect the division’s strong market position. At the meeting, there was also good reason to be pleased with the increase in the number of animals for slaughter experienced in the first six months. The Beef Division’s share of slaughterings in Denmark has thus increased from 57.2% to 59.2%.
- We have generally put the crisis and its ramifications behind us and are now reaping the benefits of our strong focus on cost reductions, something which is also helping the Beef Division to meet the targets set out in DC Future. The increase in the number of slaughterings has enabled us to streamline our slaughtering facilities considerably and thus generally improve operations at all production plants in Denmark, says Lorenz Hansen, Managing Director of Danish Crown’s Beef Division.
The division’s slaughtering facility in Husum in Schleswig-Holstein is once again reporting very satisfactory results, while Scan-Hide in Vester Skerninge has recovered after a turbulent period with heavily declining prices and large stocks of hides.
- Hide prices are almost back at pre-crisis levels, so instead of adversely affecting prices, the hides have contributed positively to increasing settlement prices for the members, says Lorenz Hansen.
While the number of animals has increased, the number of members has been relatively stable, a healthy sign that more farmers are again positive about the future, says Peder Philipp, Chairman of Danish Crown’s Beef Producer Committee.
- We have continuously contributed to improving production economy by paying our members competitive prices for their animals. Through our activities in DC Member Service, we have also provided a number of new options which improve both the overall economy and our service level vis-à-vis our members, says Peder Philipp.