Danish Crown Invests in Finisher Facilities26 November 2012
DENMARK - Danish Crown is to help pig producer suppliers with investment to build and alter old sow stalls.
The move will help to ensure the company's supply of pigs and will also secure jobs in Denmark.
Danish Crown said that it is harder to be pig producer in Denmark than in countries around us, because the political requirements for production are tighter than in many other countries.
This means that the production of finishers in recent years has been falling and there has been a lack of interest to invest in new housing - or renovate the old.
Because of this there have been fewer finishers in Denmark are fewer jobs, less income to shareholders and to Danish society.
Now the Board of Danish Crown has decided to help increase production of slaughter pigs by giving grants for the construction of slaughter houses and grants for renovation of old sow stalls.
"We see that in the political environment today there is a greater understanding that the production of pigs contributes significantly to the economy in Denmark. And if we, as a company, can help to optimise the situation - and right now help to rectify a downward curve, it is a natural decision," said Chairman of Danish Crown's Board Erik Bredholt.
Danish Crown has set a target to increase total production by 10,000 pigs a week or 520,000 more pigs per year.
"In the end, it is obviously a political decision whether there should be room for finisher production in Denmark and also whether there should be a framework that allows this. But this is an indication that the farmer owners of Danish Crown can expect a little more," added Mr Bredholt.
The plan to provide financial support for production is two-fold: one part for new buildings and part for modification of sow stalls. New construction aid will be given for the construction of new finisher units and will be given for a maximum allowance of 8,000 finishers per plant and per shareholder.
The aid will be paid at a rate of 15 cents/kg for five years.
There will be an additional programme for new construction to cover a maximum of 260,000 finishers a year. It will be paid out on a first come first served basis.
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