Friland recorded an increase in sales of organic meat and meat produced according to high animal welfare standards in the 2020/21 financial year. The company, which is owned by Danish Crown, reported revenue of DKK 998.9 million, which is 16 per cent higher than last year and the highest revenue in company history.
Friland is thus by far the largest European supplier of organic pork and beef, and clearly ranking among the world’s largest producers in this sector.
“We are proud to have achieved record-high sales. It is Friland’s, but also Danish Crown’s, ambition to supply high-quality meat produced according to high animal welfare standards, and our strong revenue demonstrates that these products are in high demand among consumers,” says Claus Hein, CEO of Friland.
The high revenue was driven among other things by increased sales in export markets and the fact that Friland has retained its market share in Denmark. Organic meat from Denmark continues to represent the bulk of Friland’s revenue, accounting for 70 per cent of sales. Denmark accounts for 40 per cent of total sales.
In 2020/21, Friland saw its sales of organic pork from Danish farmers rise by DKK 97 million to DKK 467 million. Sales of Danish organic beef amounted to DKK 241 million, an increase of four per cent.
“We are pleased to maintain our position in Denmark, while at the same time growing in our export markets. It is essential that we diversify as much as possible in terms of selling our products as this gives our suppliers the best possible assurance of acceptable settlement prices,” says Claus Hein.
Jais Valeur, CEO of Danish Crown, is very satisfied with the performance in Friland, and he emphasises that the company plays a key role in developing Danish Crown. Friland represents a strong brand to the group, which aims to prioritise organic food and improved animal welfare.
“We can see that Friland has performed very well in the past year, and we hope that, as a group, we will be able to propel the company to new heights. Friland is one of the flagships of our new strategy ‘Feeding the Future’. We will be increasing the value of our products and offer even higher quality food, which is what Friland provides. The products are a perfect match for the consumers who demand organic products and better animal welfare, and the ability to identify market growth pockets is what we should pursue when developing our business,” says Jais Valeur.
Like other companies, Friland has been hit by low activity in the restaurant and foodservice industry during the past financial year. This has resulted in slightly lower revenue in several segments.
“We believe we can achieve higher revenue, but we rely on sales in Denmark as well as on exports. We are working very hard to improve our business, and we hope we can increase the number of pigs and cattle, but this work must be aligned with the sales opportunities so that we can ensure stable and, preferably, high settlement prices for the farmers,” says Claus Hein.
At the annual meeting in Friland on Tuesday, the supplementary payments after the strong financial year are subject for approval.