Danish Crown Expands in Germany

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Danish Crown Expands in Germany

Danish Crown Expands in Germany
January 13
09:40 2017

Danish Crown is acquiring the German cattle slaughterhouse Teterower Fleisch to become the fifth-largest cattle slaughterhouse in Germany and a major player in the north European market for organic beef. The purchase price will not be disclosed.

Teterower Fleisch in Mecklenburg-Vorpommern, a federal state in what was formerly East Germany, has an annual turnover of Eur150 million, slaughters 110,000 cattle annually, has 187 employees and is privately owned. Close to 20% of the cattle slaughtered by Teterower Fleisch are organic. The company also slaughters pigs and lambs, but the focus is on cattle.

Jais Valeur.

“The German business ties in beautifully with Danish Crown’s new 4WD strategy. We want our beef division in particular to grow and to account for a larger share of Danish Crown’s total activities – while at the same time focusing more on organic products and value adding,” says Jais Valeur, president and group chief executive of Danish Crown.

Danish Crown’s beef division also has significant slaughtering activities in the north German city of Husum, where almost 90,000 animals are slaughtered annually. Following the takeover of Teterower Fleisch, the plan is to run Danish Crown Beef’s existing slaughterhouse activities in Husum and the newly acquired business as an integrated unit, focusing on specialisation and on utilizing synergies in the international markets that both companies serve.

“We are convinced that we can generate further growth by integrating the German business. We will have access to larger supplies of German raw materials, and the German company will be able to access Danish Crown Beef’s markets worldwide,” says Finn Klostermann, chief executive of Danish Crown Beef.

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