Record Settlement Prices for Danish Crown Beef Cooperative Owners

In the initial half of 2022, the cost of beef consistently broke records. However, the surge in inflation and consumer prices since the summer has led to a decrease in demand. Despite this, Danish Crown Beef concluded the 2021/22 fiscal year in a robust financial position, allowing for an increase in the supplementary payment for cattle supplied by owners from DKK 1.30 to DKK 1.35 per kilogram. The company's revenue rose by 28% to DKK 6 billion, compared to DKK 4.7 billion in the previous year. This growth was fueled by a high demand for Danish beef and a limited supply in the European markets. Finn Klostermann, CEO of Danish Crown Beef, stated that the company is in a better position than it has been in a long time. The company's success is attributed to the hard work of its employees and the strong relationships with its major customers both domestically and internationally. Throughout the year, Danish Crown Beef's slaughterhouses in Holsted, Aalborg, Husum, and Teterow performed well. The company's processing facility at Sdr. Felding introduced a variety of new products for export and the local Danish market. The success of the Burger Boost continued with sales nearly doubling in the past year. Scan-Hide, the hides producer, maintained high earnings throughout the year, contributing to the record-high settlement prices for cattle. The company also invested significantly in branding and sustainability. Despite the success in the first nine to ten months of the fiscal year, the company began to feel the impact of increased inflation in the form of decreased demand during the summer. As a result, the company is focused on maintaining its market position through innovation, sustainability, and animal welfare. The consistent demand led to a record-high average settlement price for the cooperative owners, which was DKK 8.70 per kilogram higher than the previous year. This represents a 40% increase in the settlement price for the Danish cooperative owners. The strong performance of the German slaughterhouses and Scan-Hide, along with the stable financial performance of the jointly owned companies, resulted in supplementary payments for the 2021/22 fiscal year being DKK 0.05 higher per kilogram than in the previous year. Karsten Willumsen, chairman of Beef Forum, praised Danish Crown Beef's performance over the past year. He highlighted the company's initiatives such as 'Dansk Kalv', which focuses on animal welfare, Premium Kvier, which emphasizes eating quality, and Friland Naturpleje, which aims to protect Danish biodiversity. These initiatives are designed to meet the needs of both the retail and foodservice markets, and align with consumer desires and producer conditions. Danish Crown's main responsibility is to ensure the highest possible settlement price for its cooperative owners, a goal they will continue to strive for in 2023.