Danish Crown has now set out to implement five particular initiatives directed at incentivizing Danish farmers to provide more pigs to the Danish slaughterhouses belonging to the company.
Maximization of the abattoir’s capacity is critical for the successful conversion of the Danish Crown. Therefore, the board has reached a consensus on bringing additional incentives to better the terms of delivery of pigs to the company’s abattoirs.
These new strategies include providing financial aid to the farmers which establish or expand their operations. Further, some restrictions for non-member suppliers have also been lifted which will allow the free delivery of pigs to Danish Crown for a pre-agreed timeframe.
Danish Crown’s Five new initiatives summary:
Heavy Pig Contract
Danish Crown’s current and potential members can now sign a heavy pig contract (delivery of pigs with a slaughter weight of 95.0 kg – 114.9 kg). These contracts should deliver more kilos. The condition for the contract is that there is an increase in the number of stables for slaughter pigs so that the A-quantity stays at least stagnates (unchanged).
Growth Allowance
The Danish Crown provides a growth allowance of 40 øre/kg for the 2025/26 fiscal year. This replaces the previous growth allowance 2 from the 2024/25 fiscal year. The allowance is granted to the current members who will be increasing their A-quantity post 1 March 2025, as well as new members.
Contract Pigs
Danish Crown offers non members the possibility to deliver some of their pigs as a trial contract (trial load scheme) to Danish Crown for a period of up to 12 months. There are no ownership rights associated with this delivery agreement.
Subsidy for Renting Barns
Danish Crown introduces a new subsidy that may be awarded to both new and existing members for renting an unused barn.
This subsidy applies starting on the 1st of March, 2025 and ends on the 30th of September, 2027. The subsidy also amounts to 35 DKK for each pig delivered in a rental agreement for all or parts of the period.
Coverage Contribution Guarantee for New Younger Owners
The Danish Crown has added a coverage rent subsidy under the contribution guarantee for new members younger than 40 years of age, allowing them to rent a slaughter pig barn. The coverage contribution guarantee applies with a maximum of 140 DKK contributed per covered pig, but a maximum payment capped at 100 DKK will also be enabled.
Advanced along with the new initiatives, further measures are also being developed to help ensure consistent supply in the longer term.
The agreements on new initiatives can be started today, and the Danish Crown Owner Service will support all existing and non existing members of the initiative with ample information on the new initiatives.
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