Danish Crown presented with ultimatum
On Tuesday afternoon, around 700 Danish pig producers
met with management of slaughter company, Danish Crown, for a 'crisis session'.
Previous calls by the Danish Swine Producing Industry Association, Danske
Svineproducenter, for the company to increase its prices for pigmeat by 40% per
kilo in two-months, were officially refused at the meeting by Danish Crown.
Management of the company considers the request as "unrealistic".
Chairman of the board, Niels Mikkelsen, commented that the only effect of
increasing prices in the current climate of oversupply would be that the
competition would gain market share.
The ultimatum was presented to the company in the first place by a hundred
large suppliers with the support of the industry association who threatened to
cease supplying the company.
Through its actions this week, the company is running the risk of losing
deliveries of around 2 million pigs on a yearly basis.
The decision has been left to suppliers as to how far they wish to go ahead
with their ultimatum.
Svineproducenter (in Danish)
â€¢ Danish Crown
the latest pig news, subscribe here
To comment, login here
Or register to be able to comment.