More value for the kilos delivered. That is the essence of Danish Crown Beef's strategy, and it must be ensured through a higher degree of processing, a clear market position in Northern Europe and a strong and partially integrated production and marketing of by-products. At the same time, Danish Crown Beef's subsidiaries must continue to make a strong contribution to the settlement.
The strategy can be summarized as follows:
Danish Crown Beef will create the greatest possible value as a supplier of quality meat with a strong commitment to customers, employees and sustainability - owned by Danish farmers.
- We have a strong base in our ownership strategy, which lays the groundwork for a strong and stable raw material base. On that raw material base, we must generate the most possible value for the benefit of our owner, and we have identified a number of levers we can pull that strengthen our organization both on the internal lines and towards our customers and consumers, says Finn Klostermann, who is CEO of Danish Crown Beef.
It will focus on increased sustainability and a clear market position, so that Danish Crown Beef stands out from the rest of the market.
- We have had a good ongoing development, but our surroundings are moving at such a pace that we need to look at how we ensure that we are also relevant in the future. We work with animal welfare, plastic reduction, sustainability, and we must continue to be clear on the development, so that our owners know what the market demands and how to organize their production, regardless of whether it is for the Danish, German or Swedish market, or whether it is for emerging markets around the globe, says Finn Klostermann.
At the same time, Danish Crown Beef's German activities must be raised to meet German consumers.
- We have 40 per cent of our business in Germany, where we slaughter over 200,000 cattle annually. The cattle are often sold best on the German market, so therefore the entire German part of the business must be lifted closer to the consumers, so that we get a stronger sales channel. There we must deliver on the agendas that German consumers focus on.
One of the ways to create greater value on the kilos delivered in Danish Crown Beef is by increasing the degree of processing. This must be done both through the plant in Sdr. Felding, which produces for the Danish retail trade, and through Danish Crown Beef's position in the group.
- We must take advantage of the fact that we are part of a strong group, where we can draw synergies from the collaboration with Danish Crown Foods, ESS-FOOD, Sokolow, KLS and Friland. They contribute to our overall competitiveness, so it is obvious that we need to be very close to them, says Finn Klostermann.
At the same time, the jointly owned companies must continue to deliver strongly into the settlement.
- In the most recent half-year accounts, the jointly owned processing companies delivered 40 per cent. more compared to last year, and with the focus on refining in the group strategy, they will continue to be a great asset for Danish Crown Beef's owners, says Finn Klostermann.