Danish Crown is ramping up incentives to invest in new housing for slaughter pigs. Going forward, cooperative owners who choose to build new facilities can look forward to a significantly higher new-build supplement of DKK 0.80 per kilo in the first year.
With this new model for the new-build supplement, Danish Crown aims to strengthen the incentive for modernisation and future-proofing of Danish pig production.
Previously, the supplement was DKK 0.20 per kg over a five-year period, but a new stepped model is now being introduced. Under this model, the supplement will be DKK 0.80 per kg for the first 12 months, then decrease by DKK 0.10 annually, landing at DKK 0.40 per kg in year five.
This results in an average supplement of DKK 0.60 per kg over the first five years of operation for a new pig housing facility.
“It is absolutely essential that we get new pig housing construction underway in Denmark, as this is key to ensuring competitive production and thereby thousands of jobs in the long term. At the same time, we know that new facilities equipped with the latest technology help reduce the climate footprint of production. That’s why it makes perfect sense for Danish Crown to take even greater responsibility and support cooperative members who are willing to invest and think long-term,” says Niels Ulrich Duedahl, Group CEO of Danish Crown.
The new model means that a cooperative member with newly built facilities can receive a total supplement equivalent to up to 25 percent of the investment, provided construction costs are kept at DKK 4,000 per pen. In addition to the new-build supplement, Danish Crown also offers financing of DKK 650 per pen (at an annual interest rate of 4.8%), which is repaid over five years via the final settlement.
Expectations are high that the new supplement will help accelerate construction and modernisation of pig housing.
“We are actually seeing strong interest in new construction among our cooperative members. With the increased supplement, we hope to make it possible for many more to realise their plans. In short, this is an investment in the future – both for the individual producer and for Danish Crown as a whole,” adds Søren Tinggaard, Director of Owner Services at Danish Crown.
To qualify for the new-build supplement, construction must begin no later than six months after the agreement is signed.
Cooperative members who wish to learn more about the new-build supplement can contact Danish Crown Owner Services at +45 8919 1920.