Friland grows in half a year with pressure on organic pigs
Friland ensures progress and increases revenue in the first half of 2025/26, which has otherwise been characterized by challenges in the European organic pig market.
The large supply of organic pigs has pushed prices down – especially in Germany, which remains Friland's largest and most important market.
But despite significant price pressure, Friland has increased its turnover to DKK 625 million in the first half of the year, compared to DKK 505 million in the same period last year. The reason for this is primarily a 15 percent increase in the number of pigs slaughtered.
"Friland delivers a satisfactory result even in a difficult half-year for organic pork, where sales prices have suffered from a growing supply. A continued good organic supplement in the settlement to farmers has made it attractive to produce organic pigs, but has also increased competition, which has particularly affected the sales prices of the cheaper cuts of pork," says Svend Schou Borch, CEO of Friland.
While the German market has been under pressure, Friland has experienced solid growth in both Denmark and the US, where sales volumes have particularly strengthened since the turn of the year. In Denmark, growth has been in double digits towards the end of the accounting period, while US sales are driven by an organic market that is growing twice as fast as the overall food market in the US. This has contributed to balancing the overall business.
While Danish Crown's general price for pigs during the accounting period has fallen to an unsatisfactory level that does not ensure profitability on the farms, Friland has maintained a high organic premium. This has reversed the decline in the number of organic pigs in previous years.
Currently, the organic supplement is DKK 13.85/kg plus a quality supplement of DKK 2/kg. Overall, the supplement in the first half of the year has increased by 11.6% compared to the same time last year. The development in the supplement for free-range pigs has been stable and is currently DKK 4.15/kg plus quality supplement. This shows that the free-range pig is stable in the market.
"It is positive that we are not lacking organic pigs at the slaughterhouses every week as before. Despite price pressure in the market and a challenging listing, we have managed to increase the organic supplement compared to the first half of 2024/25, and this creates some stability for organic producers, so that we can hopefully sell even more organic products in the future," says Svend Schou Borch.
While organic pork sales are on a stable growth curve in Denmark, organic beef has been challenged. A decline in retail sales due to high consumer prices and a lower number of cattle slaughters has made the organic beef business less profitable.
Since the turn of the year, however, Friland has experienced several positive events on the cattle side. In particular, the arrival of new suppliers from Thise Dairy, who will have their cattle slaughtered at Friland in the future, has helped to stabilize the raw material base. In addition, Tjele Gods and Gram Slot have also entered Friland, which has further strengthened the foundation.
"The arrival of new suppliers has been crucial to our belief in more stability in a difficult beef business. The high consumer prices for organic beef mean that more consumers are turning to alternatives, which has left its mark on retail demand. Creating a profitable business therefore requires a stable supply of cattle, which is in short supply across Europe," says Svend Schou Borch.
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