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# Substantial Year-End Bonus for Danish Crown Owners After Difficult Year
- URL: https://cibocom.ghost.io/substantial-year-end-bonus-for-danish-crown-owners-after-difficult-year/
- Published: 2016-11-22T01:00:00.000Z
- Updated: 2026-10-08T14:58:16.000Z
- Author: Cibocom
- Tags: Danish Crown, pork, beef

The primary reason Danish Crown has managed to maintain a competitive settlement for its owners over the past year is due to a high demand for pork in China and other Asian markets. The increased prices in Europe, driven by China's demand for imported pork, has not only boosted Danish Crown's sales but also instilled a renewed sense of optimism among the company's owners, according to Danish Crown’s Group CEO Jais Valeur. Despite a decrease in foreign exchange rates in some of the group’s main markets, Danish Crown’s sales exceeded DKK 60 billion for the first time, largely due to a Swedish acquisition at the start of the year and generally rising pork prices. The company reported a net profit of DKK 1.6 billion for the year, down from DKK 1.8 billion the previous year. The Board of Directors is recommending total supplementary payments of nearly DKK 1.3 billion to the owners, which equates to DKK 1.00 per kg of pork. Members supplying sows and cattle will receive DKK 0.80 and DKK 1.30 per kg, respectively. Additionally, a total of DKK 102 million is being credited to the owners’ personal members’ accounts. Despite these figures being lower than the previous year, Erik Bredholt, Chairman of Danish Crown’s Board of Directors, believes it should be viewed in the context of a year with unique challenges. He notes that the prices they are paying are still higher than those in Germany and above the new European index introduced with the new strategy plan. The company’s comprehensive five-year strategy plan, titled ‘4WD’, promises that by the end of the strategy period, the settlement paid to owners will be DKK 0.60 higher than the EU pig price index. Despite the company's sound investments and good management, Group CEO Jais Valeur anticipates challenges in the upcoming fiscal year, particularly in raising prices to reflect rising raw materials costs and ongoing issues in their UK subsidiary. Danish Crown ended the year with a stronger balance sheet and an increased solvency ratio. A strong and positive cash flow, including a significant reduction in inventories, has helped to reduce the balance sheet total and create a robust financial foundation for the group’s future development.