Danish Crown cuts jobs due to low Chinese pork demand

China’s pork consumption remains low and normalization could take up to six months, according to Danish Crown’s CEO, Jais Valeur.

This is one of the main reasons why the company is cutting several positions. Among them is 100 job cuts in Denmark, according to a press release.

Despite China’s less strict COVID-19 restrictions, the Chinese pork demand is still low. This is most likely because, many people continue to avoid restaurants, said Jais Valeur.

China’s imports of pork have halved in the last 18 months. This is due to a rise in domestic production, low prices, and moderate demand.

Pork production in China rose last year, as a result of farmers being encouraged to fatten up pigs more than usual, but earlier this month, China’s agriculture ministry urged farmers to reduce excess pork production.

Danish Crown, which produces nearly 20 million pigs per year, opened a processing factory outside Shanghai in 2019. The factory is currently running at around one-third of its capacity, which is basically the same as during the lockdown.

Over the next six months Danish Crown will try to simplify the company structure, either by merging or closing down sales departments outside Denmark.

The goal is to reduce costs by 400 million DKK annually.

About Miabell Mallikka

Miabell Mallikka is a journalist working with ScandAsia at the headquarters in Bangkok.

View all posts by Miabell Mallikka

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