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November 10, 2016

Danish Crown targets “market leadership” in northern Europe

Danish Crown aims to consolidate is position in Denmark, Sweden, the UK and Poland to become the "market-leading" pork group in northern Europe.

Danish Crown aims to consolidate is position in Denmark, Sweden, the UK and Poland to become the “market-leading” pork group in northern Europe.

Detailing its strategic ambitions for the next five years, Danish Crown said that its business units would “work more closely” in order to share knowledge and realise internal synergies. For example, by operating as a single unit, Danish Crown said that it expects to benefit from lower procurement costs by centralising purchasing under a single manager. 

The Danish meat cooperative also said that it intends to sharpen its consumer focus. “Danish Crown will invest in innovation to strengthen its position within the retail business, foodservice and ready-meals solutions,” the company said. “At the same time, the plan focuses on the establishment of a number of global product categories based on product groups with global sales potential.”

The final pillar of Danish Crown’s new strategy, dubbed 4WD, will see the cooperative work to move its farmers’ meat higher up the value chain by focusing on products that command a higher price point. “Danish Crown will focus on boosting the value of the group’s raw materials, including organic products, pigs raised without the use of antibiotics as well as local speciality products,” the company noted. 

Danish Crown said that its strategy, which will guide it through to 2021, will enable it to boost the price it pays its farmer-owners for their meat. Last week, Danish Crown said that it intended to pay the company’s owners a settlement price in 2021 which is DKK0.60 higher than a weighted average of the settlement prices paid to farmers in Germany, Spain, France and the Netherlands. 

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