Danish meat producer Danish Crown has reported a more than 21% drop in net profit to 788 million Danish crowns (about 122 million $) for its financial year ending 30 September. The company says profits for Danish pig farmers are being squeezed after China imposed anti-dumping duties on European pork.
The Chinese tariffs, set at around 30%, have hit the group’s gross profit and will lead to reduced payouts to Danish Crown’s farmer-owners.
“We really can’t do much other than just absorb the 30% duties and try to pass some of it on to importers,” CEO Niels Duedahl told Reuters.
Danish Crown is Denmark’s largest meat producer and exporter, and China is a key Asian market for the company. A substantial share of its exports to China consists of offal, which can only be sold at a fraction of the price in Europe and Africa.
The duties, introduced in early September, are widely viewed as retaliation for EU tariffs on Chinese electric vehicles.
