August 29, 2007

Danish Crown ramps up efforts to sell pork to China

Following Smithfield's announcement that it is exporting pork to China, Danish meat cooperative Danish Crown said it is intensifying efforts to tap the China pork market in the midst of high prices.

Growth in China would offset the poorer margins in the EU, where the pork industry has been crippled by a sharp rise in feed costs, the company said.

Sales director Jens Haven Christiansen is highly optimistic on the Chinese market as growing demand comes at a time of lower supplies currently.

Chinese authorities granted permission to the Danish cooperative pork processing industry last February for all its slaughterhouses. However, due to the Chinese preference for pig trotters and pig ears, revenue growth has mainly centred on these products so far.

The situation is about to change, says Christiansen.

The cooperative, which bought a Hungarian meat processor last December, now hopes to focus on the growing Russian market.

Danish Crown admits it is anxious to develop these markets, due to the rapidly rising feed prices at home.

Increased exports would relieve pressure on the European markets, the cooperative said. 

Danish Crown is the world's second largest pig processing company, slaughtering 22 million pigs annually.