Danish pig sector hit by financial crisis

Reports from the Danish media suggest that the global financial crisis is expected to dramatically reduce the value of annual Danish pigmeat exports by DKr2.1bill (€282m) for both the remainder of this year and 2009.

Over the coming months, consumers across the globe are expected to tighten their budgets, particularly in the case of food spendings. As Denmark exports 90% of its pig production, food exports have the potential to be seriously affected.

Negative projections
Economists and market analysts at Danske Slagterier and the branch organisation Danish Pig Production (BODPP) have both projected negative financial expectations for the next year. Torben Poulsen, chairman of Danish Pig Producers (DPP) fears that the evolving crisis will force yet more Danish pig producers out of business.

Rising land prices increasing equity, and loan possibilities, have allowed many Danish farm enterprises to survive the economic burdens of recent years, but with the financial situation as it is, possibilities are becoming limited.

Loans frozen
"Finance organisations now require positive income from primary drift. Further loaning on this basis has been immediately frozen: Danish credit organisations and banks are now refusing extended credit to all farm businesses, even those with so-called 'solid equity'," said Poulsen.

Related Website
• Danish Pig Producers (Danish)
• Danske Slagterier

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