Through a number of measures, Danish Crown has taken the next step towards ensuring that the group will remain a competitive business in future.
More than 50 administrative jobs will be cut in both the Pork Division and group functions, on top of the 30 administrative positions which the Tulip Food Company has cut in recent months.
Capacity cuts in the Beef Division, the establishment of a combined unit under Danish Crown Nordic and moving Friland’s head office to Randers are also some of the elements which, under the heading DC Future, will ensure a reduction in costs and thus a honing of competitiveness at one of Europe’s biggest pig slaughterhouses.
“In recent years, Danish Crown’s Danish departments have witnessed huge changes. We have implemented cost savings totalling DKK 470 million (€63 million) – with the decisions made in the past month alone accounting for savings to the tune of DKK 210 million (€28 million). We have closed down ten Danish departments and laid off 2,600 employees, and the most recent measures are only part of the work which is taking place to cut costs in the company and to be able to present a reliable and competitive budget for 2009/10,” says Kjeld Johannesen, CEO of Danish Crown.
In the past few weeks, the number of animals being slaughtered by Danish Crown is higher than forecast, and in the past two weeks the price paid to farmers has been raised by DKK 0.40.
“The company’s owners are under so much pressure that drastic measures are called for, and in the coming months senior management will minutely review all costs. However, it is important to stress that we think it will be realistic to increase prices further in the coming weeks when looking at market developments,” says Kjeld Johannesen.
“DC Future is a pledge to our owners that Danish Crown can and must remain competitive in a European context. To achieve this, every possible measure must be taken,” says Kjeld Johannesen.
• Danish Crown