Posted on 11 May 2012.
Danish Crown, Europe’s largest meat processor, has reported a 1.2% decline in first half profit to DKr733 million (Eur98.6 million), chiefly due to increasing commodity prices. Consolidated revenue increased from DKr24.7 billion in the first half of the previous year, to DKr27.6 billion, reflecting organic growth as well as the acquisition of D&S Fleisch in Germany and Parkham Foods in the UK
”When commodity prices go up, it is our responsibility to ensure that this is reflected in the end prices, but there is a slight delay in the market which means that the price increases do not take place concurrently in the various parts of the value chain,” explains Preben Sunke, chief finance officer of Danish Crown.
The results also reflect increasing earnings by the Pork Division, but in a cautious market. ”We are noting a certain hesitation among consumers in several parts of the world, and although we are largely able to adapt to new trends, for example an increasing demand for inexpensive cuts or different product mixes, we are very much aware of this trend,” he says.
Danish Crown is Europe´s largest pig slaughtering business and the world’s largest exporter of pork. It is also Denmark´s largest cattle slaughterhouse company.
”Together with the uncertainty about future demand, turbulence in the financial markets is also a factor to be reckoned with when engaging in cross-border trading.” Preben Sunke adds: “Given the state of the market and the intensifying competition, the results are satisfactory and testament to Danish Crown’s stability and adaptability, also in response to sudden new developments.”
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Posted on 09 May 2012.
Danish Crown, Europe´s largest meat processing company, plans to construct a new cattle slaughterhouse at Holsted in Denmark at a cost of DKr 0.5 billion (Eur67 million). The biggest single investment in the cattle sector ever, this will be the first large cattle slaughterhouse to be established in Denmark for almost four decades. Entailing the creation of about 300 new jobs, the slaughterhouse is based on state-of-the-art principles, paving the way for optimising quality control procedures, including better utilisation of by-products and, ultimately, better meat quality.
”We have for several years reaped the benefits of investing in a top modern slaughterhouse in the Pork Division, and when looking at the upward trend in production costs in the Danish slaughterhouse industry, we have to be at the technological forefront to be competitive. The new cattle slaughterhouse will secure us that position. We also ensure that we create the highest possible value from our raw materials as well as make the most of the energy and other resources available,” says Lorenz Hansen, division director of DC Beef.
As a result of the establishment of the new cattle slaughterhouse in Denmark, Danish Crown will be closing down the cattle slaughterhouses in Tonder and Holstebro, and the deboning departments in Skjern and Farvang will move to the new, modern slaughterhouse. The existing head office in Herning will also move to the new premises. 400 employees in DC Beef will be affected by the new slaughterhouse.
The slaughterhouse is expected to be ready at the beginning of 2014, but DC Beef expects to be able to relocate its head office to the new premises in autumn 2013.
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Posted on 19 January 2012.
Tulip, the UK’s largest pork processor, is to close its Tranfoods factory in Birkenhead with the loss of 214 jobs. Production will be transferred to the company’s King’s Lynn or Bodmin factories.
According to Peter Judge, Tulip’s chief operating officer, the Birkenhead factory is at the end of its economic life. “The Tranfoods site is quite an old site in terms of the operation, by modern manufacturing standards,” he says.”We have capacity within other parts of the Tulip operation where we can do this manufacturing volume without having to invest significant capital in a bid to bring the volume on stream.”
Famous for the Danepak brand, Tulip is the UK’s leading manufacturer of bacon, pork, sausages and cooked meats. The company has a turnover of about Eur1.3 billion and employs more than 6,000 people. Tulip is part of Danish Crown, Europe´s biggest pig slaughtering business and the world’s largest exporter of pork. The UK is Danish Crown’s largest market.
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Posted on 25 November 2011.
Tulip has consolidated its position as the leading UK supplier of processed meat products following the acquisition of Parkam Foods for an undisclosed sum. The deal strengthens Tulip’s market standing by adding new products to its portfolio, while at the same time further increasing its sales to the biggest UK retail chains.
In addition to cooked meats, sandwiches and sausages, Parkam Foods also produces a number of high-quality products based on beef, turkey and chicken. This will add a new and valuable dimension to Tulip’s business.
Parkam Foods consists of four companies: Parkam Foods, Tranfoods, Trophy Foods and Freshway. The companies have a total of 750 employees, with expected revenue for the current financial year in the region of £100-115 million. Parkam Foods is a strong player within the premium segment, and Steve Murrells, chief executive of Tulip, believes that this is what makes the company a perfect match for Tulip.
Tulip is part of Danish Crown, Europe´s biggest pig slaughtering business and the world’s largest exporter of pork. The UK is Danish Crown’s largest market. Tulip handles all of Danish Crown’s processing activities in the UK as well as slaughtering and cutting fresh meat for the domestic market.
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Posted on 01 December 2010.
Reduced costs and improved results at its foreign subsidiaries were behind an increase in full year net profit from DKr1.16b to DKr1.65b (Eur220m) at international meat group Danish Crown. Revenue advanced from DKr44.76b to DKr45.21b at the group, which is Europe´s second largest pig slaughtering business.
Since May 2009, Danish Crown has been implementing an efficiency improvement programme – DC Future –designed to cut costs, restore competitiveness and improve earnings. The strategy is now starting to pay dividends.
A total of DKr1.32b will be paid out to the company’s owners, the highest level of supplementary payments in Danish Crown’s twenty years history. The supplementary payments will translate into DKr0.75 per kilogram for sow producers, DKr0.95 for pork producers and DKr1.25 for cattle producers.
Danish Crown’s foreign divisions also posted record earnings last year. The Danish group exports over Eur3.4 b of meat annually. This represents 3.9% of Denmark’s total exports and 39% of the country’s agricultural exports.
In recent years, Danish Crown has become increasingly international, and nearly two-third of the workforce is based outside of Denmark. ”This is a natural development for a company which exports approx. 90% of its production. Moreover, a continuous reduction in production costs is needed if we are to remain competitive. Today, 84% of our processing activities take place outside Denmark, and this is a precondition for being able to slaughter Danish pigs in Denmark, and thereby maintain a considerable number of workplaces in this country,” says Kjeld Johannesen, chief executive of Danish Crown.
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