May 7, 2008

Danish Crown faces new competitor
 

A new competitor has entered Denmark's meat market scene and the increasing competition could further dent Danish Crown's massive market share.
 

This week, pig slaughter plant Moesgaard Meat AS was established in Jutland's Holstebrom, with agriculture minister Eva Kjer Hansen conducting the official opening on Monday (May 5, 2008). Producers who were suppliers to Danish Crown, according to a report by Dutch agricultural newspaper Agrarisch Dagblad, started the new company.

The slaughterhouse has a capacity of 100,000 pigs a year, although it is predominantly for sow slaughtering. The company will process animals from its own production sites but will not reject animals from elsewhere.

Company founders Hans and Niels Jorgen Haahr hope that processing sows could help to reinforce the recent calls to stop the exports of livestock.

Aside from Moesgaard Meat AS, German meat processor Tonnies, Jutland Meat and Danish Meat Company had all grabbed a stake in the Danish market.

In February, a new trading company Danpork was also established. It was a company set up by former Danish Crown employees who were disgruntled with Danish Crown's meat prices. Danpork is considering entering the processing industry as well, and hopes to achieve about 10 percent of market share in the future.

Meanwhile, Danish Crown acknowledges the increased competition in the shrinking Danish market. Denmark's total pig herd has fallen by about 10 percent in the last decade and Danish Crown could possibly close down one or two facilities this year.