October 2, 2009

Danish Crown's pork exports fell 18 percent during the first half of 2009, as increasing numbers of Danish pigs are sent to Germany for finishing and slaughter.

Germany surpassed Denmark last year to become the second largest pork exporter after the US.

Danish Crown is also under pressure from German slaughterhouses that can pay higher prices to pig farmers. As a result, the exports of live pigs from Denmark to Germany are rising at a rapid pace forcing Danish Crown to close down facilities and cut staffing levels.

The company is now making efforts to further cut costs by reducing pay costs. The aim is to cut pay costs by DKK600 million (US$119.42 million).

A business school study pointed out that Denmark is still in the lead when it comes to slaughterhouse technology. However, Danish Crown said it is no longer possible to balance rising wages by increasing productivity, which is leading to an increase in job terminations.

Wages in Danish Crown slaughterhouses have increased 25 percent since 2000, whereas in Germany they have fallen five percent.

Danish Crown is Europe's largest pork processing company and Denmark's largest beef processing company, as well as its single largest agricultural exporter.