News 599 views last update:Feb 26, 2008

Danish pig producers abandon Danish Crown

Threats by suppliers of Danish Crown to abandon the company became reality on last week when they announced the establishment of their own independent company for fattening pigs.

Producers are unhappy about the prices they receive for their pigs in the current turbulent situation with high feed prices.

The group make up around 10% of Danish pig producers representing around 2.5m pigs.

Their business will be directed primarily at the German slaughter industry, which provides higher payments, according to the group, than Danish Crown and its subsidiary, Tican.

The producers deliver themselves on a yearly basis around 150,000 fattening pigs, but they intend to market pigs from other farmers.

Danish Crown can only sit back and wait to see how the situation develops. According to Niels Mikkelsen, chairman of the management board, "this is not the first time that suppliers have chosen alternatives to Danish Crown. In such a large organisation, it is logical that some producers choose to take a different direction. In the past, such actions caused use to close one or more slaughterhouses."

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