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
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.
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
"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.
• Danish Pig Producers
• Danske Slagterier
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