November 14, 2008
Rising output hurting Denmark's organic pig sector
Denmark's organic pig producers are facing tough challenges that threaten their margins due to rising domestic production.
Rising pork production has led to future-contract feed prices and declining pig prices on the export market, conditions that further pressurise the already beleaguered organic pig producers.
While sales in the Danish domestic market have increased this year, exports have declined sharply as the UK has significantly reduced its pork imports. The UK is a key importer of Danish organic pork.
A large quantity of pork exports to the British market were lost at a period of time when Danish pig production has been increased to meet expected higher demands in the UK and other European export markets, said Henrik Lauritsen, international departmental chief of Danish organic meat company, Friland.
Many other countries have also increased their organic pig production, which hurts Denmark's market share, according to Lauritsen.