New Stable Support Plans by Danish Crown

The demand for pork from Denmark has reached an all-time high, prompting Danish Crown to introduce a new initiative to aid in the construction of additional pig stables for finishers. The scheme will enable its owners to secure loans for the development of new stables, thereby increasing their capacity to finish pigs. Many of our owners are keen to expand but struggle to secure the necessary funding. As a result, we've developed a system where they can borrow a sum equivalent to the collateral in the supplementary payments of the coming years. This system offers a fair interest rate and a stringent repayment plan. It's only feasible due to the current market conditions and the promising outlook for the next few years, which is more positive than we've seen in a long time," explains Nicolaj Nørgaard, Director of Owner Services at Danish Crown. Owners of Danish Crown farms can secure a loan of DKK 650 for each new pig sty they build. Typically, this would cover between 20 and 25 percent of the total cost of constructing a new barn. The loan is repaid over the balance and, depending on when pig production begins, must be repaid within two to three years. Danish Crown has set aside 200 million DKK for this initiative. If the loan program is successful and the entire amount is invested, it could result in an additional 1.2 million pigs per year. The loans are available to all farmer owners on a first-come, first-served basis, provided that construction begins within six months of Danish Crown approving the loan. "This new financing model will likely appeal to proficient farmers who have demonstrated their ability to run their operations efficiently, but lack the capital to fully fund the construction of a barn. It may also attract farmers who currently focus solely on piglet production," says Nicolaj Nørgaard. Since the financial crisis, Denmark's financial sector has been hesitant to lend to agriculture, particularly for the construction of new piglet stables. This has led to an investment backlog in this sector, which could potentially harm the overall agricultural industry, warns Danish Crown's chairman. "Denmark is a farming nation, and a significant portion of the population supports Danish agriculture because of the jobs and income it generates. We must protect this support, and the best way to do this is by ensuring job security in slaughterhouses and the broader agricultural sector. I hope this initiative will help boost and sustain Danish pig production," says Erik Bredholt. Loan applications are now open, and the interest rate on the loans is currently set at four per cent.