Danish Crown, the major pork processing company, announced its decision to sell its facility in Pinghu, China. A company spokesperson confirmed the news, stating that the factory “didn’t develop in line with our expectations.”
This move comes under the leadership of new CEO Niels Duedahl, who took the reins last August. Duedahl, who succeeded Jais Valeur following his early departure, emphasized the company’s strategic overhaul. Chairman Asger Krogsgaard noted the business is entering a “new strategy period” and undergoing a “significant transition.”
In recent weeks, Danish Crown also decided to stop selling retail-packed fresh meat in Germany. This decision aims to enhance profitability and will result in the winding down of the Oldenburg Convenience division by the end of February.
The company’s 2023/2024 report highlighted a year of “significant market and geopolitical changes” impacting operations. Moving forward to fiscal year 2024/25, Danish Crown expects a continued decrease in slaughter animal production across Europe.
The report indicated, “The pace of the decline slowed in 2023/24, but the downward trend remains challenging.” Factors contributing to this decline include reduced pork demand in China, the outbreak of African Swine Fever (ASF) in Germany, and rising raw material prices due to the war in Ukraine.
Danish Crown reported stagnation in revenue for 2024 at DKr67.8 billion ($9.4 billion), showing only a slight increase from DKr67.6 billion in 2023. However, net profit fell by 28.5%, from DKr1.4 billion in 2023 to DKr1 billion in 2024.
Despite these challenges, Danish Crown continues to operate facilities across Denmark, Sweden, Germany, the Netherlands, Poland, the UK, and France.
Source: Just Food Danish Crown, the major pork processing company, announced its decision to sell its facility in Pinghu, China.
