DENMARK

Danish Crown: Expected balance payment to cattle owners increased to 110 øre

Beef

During the year, Danish Crown Beef has raised the cattle price by 49 percent compared to last year, but despite the high level, the board of directors' recommendation for the remaining payment for cattle is significantly above expectations.

Posted on Nov 10 ,00:25

Danish Crown's board of directors has decided on their proposal for the year's remaining payment, and for cattle owners there is a prospect of a payment of 110 øre per kilo. This is 40 øre more than the expected 70.

The explanation is good sales in Danish Crown Beef, which far exceeded expectations in the final period of the financial year.

"We have had a strong market for beef and veal throughout Europe. This has meant that we have raised the price significantly to the delight of our shareholders. What surprised us positively in the latter part of the financial year was the extent to which we were able to deliver exactly the products for which there was the greatest demand", says Finn Klostermann, CEO of Danish Crown Beef, and continues:

"It is especially in the high-quality products for the southern European markets that we have seen an unusually good market in the late summer. Our owners have really embraced our marbling supplement. In short, it has given us better products to sell, and our customers have acknowledged this, even though prices have been record high".

Danish Crown's cattle price has increased by almost 50 percent during the year compared to the level at the start of the financial year.

"The result is obviously an expression of a good market, but also a strong effort from the employees throughout the year and a strong operation of our three Danish factories. It lays a good foundation for the coming year, where the focus remains on delivering maximum value to our unit owners", says Finn Klostermann.

Danish Crown's financial statements will be presented in two weeks, and the year's remaining payments must be approved by Danish Crown's board of representatives when they meet on November 28.

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