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News 688 views last update:Aug 29, 2007

Danish Crown focusing on China

The Danish meat cooperation Danish Crown will intensify attempts to sell its pork in China.

According to the meat cooperation, China is key to compensate for the bad market situation in the pig industry, due to staggering growths in feed costs.


Due to a growing demand for pork, chances for success in China are better than ever, says sales director Jens Haven Christiansen. "Price increases of 75% show that there is an increasing demand in China to import fresh meat."


Export permission
Last February, the Chinese authorities granted an export permission to the Danish cooperative pork processing industry (in which Danish Crown is the most important) for all its slaughterhouses. However, for now, the revenues have been confined to selling pig toes and pig ears.


Exports of more expensive parts hitherto has not proven to be worthwhile, but that situation is about to change, says Christiansen.


Apart from a focus on China, Danish Crown also hopes to focus on the Russian market which is also developing positively.


Urgency
There is a sense of urgency to develop these new markets rapidly, Danish Crown admits. "Feed price increases of 50% make the situation grave for many delivering companies.


Increased exports to these new markets releases the pressure on the European markets, causing price pressure to decrease as well.


Second largest
Danish Crown is the world's second largest pig processing company, slaughtering 22 million pigs annually.


Last week, the world's biggest pig processing company Smithfield also revealed agreements to ship pork to China.


Related news items:
• Smithfield: agreement for pork exports to China (24 Aug 2007)


Related websites:
• Danish Crown
• Smithfield Foods 


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