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In an extraordinary meeting on April 19, Danish Crown's board of directors made the decision to close the slaughterhouse in Sæby. The number of pigs for slaughter in Denmark has been declining by more than 10% per week over the last year such that Danish Crown's slaughter capacity has become far greater than the number of pigs delivered weekly to the group's slaughterhouses.
This excess slaughter capacity costs the company more than DKK 300 million per year.
Although pork prices at the supermarket increased last year, inflation has made it difficult for many Danish farmers to make a profit producing finishing pigs. As a result, some have opted to close their farms and others to sell their pigs for export when they weigh around 30 kilos, as the demand for Danish piglets from Poland and Germany is so great that it provides farmers with a reasonable income.
In order for this trend to be reversed and to secure employment for the workers at the other five slaughterhouses in Denmark, Danish Crown must be able to increase the payment for the deliveries of pigs to match the level in Germany and ensure that the farmer earns a profit from finishing pigs for slaughter.
While 800 employees are about to lose their jobs at Sæby, Danish Crown expects to have to hire up to 450 new employees total at the slaughterhouses in Horsens, Ringsted, and Blans near Sønderborg in the next six months. This is because part of the production from the Sæby plant will be carried out at other Danish Crown slaughterhouses in the future.
Danish Crown expects that there will be employees from the Sæby slaughterhouse looking to work at one of the three slaughterhouses that are now hiring. Therefore, Danish Crown is willing to assume part of the transportation costs for a period of time or provide a relocation subsidy.
April 20, 2023/ Danish Crown/ Denmark.
https://www.danishcrown.com
