DC Beef Reports Convincing Results22 November 2012
DENMARK - In the year to the end of September, Danish Crown Beef has paid an average of DKK 1.77 more per kg of beef supplied by the cooperative members.
However, the company said that there is also room for record high supplementary payments of an additional DKK 1.5 per kg.
"It has been a very good year for DC Beef. We have achieved significantly better prices for the meat and our business is developing very positively so I expect us to be able to deliver strong results in future," said Peder Philipp, Chairman of DC Beef.
Despite a declining number of slaughterings in Denmark, in the past financial year DC Beef has managed to increase its market share from 62.7 to 63.1 per cent.
"I am satisfied that we have basically slaughtered the same number of animals as last year. At the same time, I am delighted that new cooperative members are joining Danish Crown because it demonstrates that cattle producers have faith in the company and, not least, the strategy we have laid," said Division Director of DC Beef, Lorenz Hansen.
During the past four years, DC Beef has successfully raised the average quoted price by more than 27 per cent per kg. At the same time, supplementary payments have doubled.
This strong development provides grounds for optimism about the future, so on 6 September DC Beef broke the ground for a new cattle slaughterhouse near Holsted in southern Jutland. The slaughterhouse represents an investment of DKK 675 million and will ensure that Danish Crown and Danish cattle producers can compete together on the global market.
"Construction is already well under way, and it is going according to plan. I am convinced that the new slaughterhouse will be hugely significant for the Danish cattle sector," said Peder Philipp.
He added that already in year two following completion the new facility is expected to strengthen competitiveness.
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