Danish meat producer announces 350 redundancies

Danish Crown, Denmark’s largest producer of meat, is to release 350 employees due to financial challenges, the company said.

Danish meat producer announces 350 redundancies
Danish Crown said it is to let 350 staff go as farmers struggle with production costs. Photo: Redstar/APPR/Ritzau Scanpix

Financial problems suffered by farmers who supply pigs to the company are behind the decision to let staff go, Danish Crown said in a statement on Friday.

Two Danish Crown abattoirs are affected. Around 275 are to lose their jobs at Sæby, while another 75 at a factory in Ringsted are also to be let go. Danish Crown currently employs around 8,000 people in Denmark.

Poor economy in the production side of the business is to blame for the decision, the company said.

“This is a very unpleasant situation. The employees affected by this have produced excellent work. Since autumn 2020 and until a few weeks ago we have almost constantly had more slaughter-ready pigs than we could slaughter,” head of production Per Laursen said in the statement.

“But the situation now looks different and it hurts to see that we now are set to say farewell to around 350 competent staff,” he said.

High energy prices are a factor in the financial struggles that have led to the redundancies, as are increasing costs of feed. These have caused many farmers to scale back or stop production of pigs for meat production.

Statistics Denmark figures show that the number of pigs in Denmark fell by almost one million during the last year. 13.4 million pigs – more than double the number of people – lived in Denmark in January 2021 according to the agency’s records.

Data from industry organisation Danish Agriculture & Food Council (Landbrug & Fødevarer)

Show additional energy costs for the sector of 20 million kroner compared to 2021, financial media Finans reported on Thursday.

Danish Crown said it will invite released staff to interviews to discuss future options. The company is obliged to launch a social plan when firing large numbers of staff under the terms of its agreement with trade unions.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Danish farmers to get millions in EU drought aid

Almost 50 million kroner from the EU is to be granted to farmers in Denmark to help them cope with the financial impact of this summer’s drought.

Danish farmers to get millions in EU drought aid

The EU money is granted to help farmers in member states, including Denmark, when drought occurs. The grant to Denmark, which totals 47.3 million kroner, was confirmed by the Ministry of Food, Agriculture and Fisheries in a statement on Thursday.

“I am very pleased that the EU Commission has decided to allocate more money for extraordinary drought aid to farmers,” agriculture minister Jacob Jensen said in the statement.

“Danish farmers have been through a tough summer, first with extraordinary drought and then with a very wet July, which has given the farmers difficult working conditions,” Jensen said.

READ ALSO: Rain and floods: How global heating could alter Nordic summers

The EU Commission has made a total amount of 330 million euros available for drought aid, the ministry said. Denmark’s allocation of just over 47 million kroner, or 6.35 million euros, will be paid out by January 31st next year.

The money will be distributed to applicants for the agricultural grundbetaling or basic payment in 2023, based on the number of per hectares for which basic payment was applied for.

Grundbetaling is the basic element of the agricultural aid that all farmers who have more than two hectares of agricultural land can apply for in Denmark.