October 27, 2008

Financial crisis hits Danish hog industry

The global financial meltdown is expected to dramatically reduce the value of annual Danish pork exports by DKr2.1bill (282 million euros) for both the remainder of this year and 2009, media reports say.

As consumers worldwide are expected to tighten their food budgets, ninety percent of Denmark's pork exports are seen to be affected.

Economists and market analysts at Danske Slagterier and the branch organisation Danish Pig Production (BODPP) have both predicted negative financial registrations in 2009. Torben Poulsen, chairman of Danish Pig Producers (DPP) said the evolving crisis is feared to force more Danish pig producers out of business.

Rising land prices increasing equity, and loan possibilities, have allowed many Danish farm enterprises to survive the economic burdens in recent years, but this financial crisis will tremendously limit opportunities.

Finance organizations now require more positive income and further loaning has been immediately frozen with Danish credit organisations and banks are now refusing extended credit to all farm businesses, even those with so-called 'solid equity', said Poulsen.