Danish Crown: Increased pig supplies and new initiatives

Forecasts and Future Plans

Danish Crown expects to slaughter approximately 9.4 million pigs in the 2025/26 financial year. This corresponds to near-full capacity utilization. Group CEO Nils Ulrich Duedahl noted that such slaughter volumes require careful management of supplier agreements. Therefore, new regulations regarding pig supply volumes are being introduced.

New Supplier Regulations

One of the key changes is the introduction of the so-called "stability mask." Suppliers will now be unable to increase their supply volumes, known as A-quantities, without prior approval from Owner Service. A 12-month notice period is also required for changes to supply volumes, allowing the company to more effectively manage its resources and plan slaughter.

Support for Young Farmers

Effective September 1, 2025, Danish Crown will discontinue agreements for growth bonuses and heavy pig supplies. However, margin guarantees and barn subsidies will remain available to new and young suppliers. This decision is aimed at supporting young farmers and start-ups, which is particularly important given the anticipated generational shift in the industry. Owner Service DIRECTOR Søren Thinggaard emphasized that the company maintains support tools for beginning farmers, enabling them to successfully enter the market.

Close Collaboration with Suppliers

: Danish Crown views these new measures as a step toward closer collaboration with suppliers. This will allow for optimal capacity utilization and ensure competitive conditions for all market participants. Nils Ulrich Duedahl noted that, given the high interest in collaboration, it is important to maintain an open dialogue with suppliers to find the most effective solutions.

Danish Crown is thus demonstrating a proactive approach to business development, adapting to changing market conditions. Increasing pig supply volumes, new initiatives to support young farmers, and the introduction of strict supplier regulations are all aimed at strengthening the company's position in the industry and creating a sustainable supply chain. This could ultimately lead to improved product quality and increased competitiveness in the market.