February 26, 2008

Pig producers leave Danish Crown in search of better prices
 

A group of pig producers have left Danish Crown to establish their own independent company for fattening pigs due to imbalanced prices.

Escalating feed costs but low pig prices have caused unhappiness among the producers. The group make up about 10 percent of Danish pig producers, representing a total of 2.5 million pigs.

According to the group, their business will be directed at Germany's slaughter industry, which provides higher prices than Danish Crown and its subsidiary Tican.

The producers market about 150,000 fattening pigs per year, but they intend to also market pigs from other producers.

Niels Mikkelsen, chairman of Danish Crown's management board, said this is not the first time suppliers have chosen alternatives to the company and it is logical that some producers would choose a different direction.