Danish Crown is now reconsidering this policy and writing the member's account out of the articles of association.

- One of the key tasks when setting up a business as a producer of slaughter animals is ensuring sufficient liquidity. We will now do what we can to address this challenge, and therefore we've drawn up a plan to abolish the member's account, which will also make it more attractive for everyone to expand their production of slaughter animals, says Erik Bredholt, Chairman of Danish Crown. 

The first step is to stop payments into the owners' members' accounts in Danish Crown, with effect from FY 2017/2018. This means that DKK 0.15 per kg for pigs and DKK 0.30 per kg for cattle will not be withheld from the supplementary payments disbursed to the owners in December 2018.

A newly established farmer supplying 6,000 pigs a year to Danish Crown will thus have additional liquidity of approximately DKK 75,000 for his operations. Likewise, an owner who, over eight years has increased his supplies from 5,000 to 15,000 pigs, will receive approx. DKK 125,000 extra, money which would otherwise have remained in the member's account.    

- By strengthening our owners' liquidity, we are also increasing Danish Crown's competitiveness considerably. We want to be the company for those who – together with us – want to safeguard and develop the production of slaughter pigs. In my view, this change will greatly help our efforts to keep more weaners in Denmark, thereby creating more jobs at our abattoirs and boosting exports, says Erik Bredholt.

At the moment, the owners have just over DKK 1.5 billion sitting in their members' accounts in Danish Crown. The plan is for this money to remain in the owners' named accounts until FY 2020/2021, when Danish Crown will start disbursing it over an eight-year period.

- Such a significant change to the company's structure is only possible because Danish Crown is a financially strong company – because the owners have allowed capital to remain in the company.  We have sold Plumrose at a very good price, and our management has skilfully managed to reduce our net working capital. Therefore, it's now completely justifiable for us to take this step, because we still have the necessary capital to grow and develop the company, says Erik Bredholt. 

Cooperative members who stop or who have already stopped supplying Danish Crown will not be affected by the changes. The balance in their member's accounts will still be paid out over five years from termination.