Danish Crown is working on financing models for the construction of new stables
Recently, five new initiatives were introduced that together will contribute to the supply of pigs this year, but in a longer perspective, future solutions are also being worked on - including specific models for how Danish Crown can contribute to securing the financing of new slaughterhouses.
"Both Danish Crown and the entire industry are facing challenges with the raw material base in the future. That is why we must think in new ways. We are very interested in creating joint solutions where the farmer and Danish Crown can collaborate on something that is of mutual benefit to all unit owners. We believe that this could, for example, be a model where we - possibly in collaboration with professional investors - provide the money for the construction of new stables", says Niels Duedahl, Group CEO at Danish Crown.
The future plans do not change the primary focus here and now for either Niels Duedahl or the rest of the organization at Danish Crown.
"Our overriding task is to restore our competitiveness on the listing. This has our full attention, and is the most important goal right now. But we also know that there seem to be challenges with the raw material base for everyone in the future. Therefore, we must already look at how we can do what we can to solve that challenge in a timely manner", says Niels Duedahl.
Meeting with interested producers
The first concrete agreement on financing is still some way off – initially, Danish Crown is inviting all interested parties to a meeting to get input so that new solutions can be created. A dialogue that Danish Crown's Owner Service expects to be good and positive:
"We have investigated the interest of our unit owners, and we assess that there is potential that, in the 18-30 month term, could provide a not insignificant number of pen spaces. If our financing proposal can also arouse interest among pig producers, who, for example, currently export all their pigs, then it will give us extra good opportunities to ensure a stable raw material base in the longer term", says Nicolaj Nørgaard, Director of Owner Service at Danish Crown.
Difficult for young people in the industry
In addition to the very concrete effects on the supply of pigs to Danish Crown, the idea of financing barn construction can also contribute to another purpose.
"It can be very difficult for young people in the industry to establish themselves, both when they have to start on their own and when they have to take over during a generational change. Young farmers do not always have the opportunity to finance a slaughterhouse worth many millions. This is a challenge that we would like to investigate whether we can remedy. After all, it is absolutely crucial for the future of the entire sector that the younger generation has the opportunity to get started", says Niels Duedahl.
The meeting with interested pig producers will take place on April 4th.
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