Hopes Rise for Danish Pig Meat Sector

There are hopes in Denmark that workers at Danish Crown will accept a proposal from the meat workers union that they should sacrifice some of their salary to invest in primary production and save slaughterhouse jobs.

The basis of the scheme was to boost the number of finishing pigs in Denmark and prevent farmers exporting them Germany, Poland and Sweden where they were receiving better payment rates.

The Danish pig sector said that the higher rates in Germany, Poland and Sweden were based on subsidies being paid in these countries.

The meat workers union put forward the plan in a bid to see more pigs going through the slaughterhouses in Denmark and to prevent potential job losses because of the slide in numbers being slaughtered in Denmark.

However, the radical proposal, which is believed would have seen meat plant workers sacrifice about DKK1000 per month was narrowly voted down by the workers last month. It is believed that the workers were concerned that there were no guarantees built into the scheme where they might be able to recoup their money later.

Now, it is hoped that a reworked scheme will be put before the workers shortly that will include some form of guarantees that they will not lose the money they are sacrificing from their salaries.

“The Danish Crown workers are still negotiating to take a wage cut to reinvest and they will have another vote,” said Nicolaj Norgaard, the director of the Danish Pig Research Centre, speaking during the annual meeting of the research centre in Herning.

"We are hoping to see a new thinking and that the workers will accept a reduction of money to invest in the industry."

Asger Krogsgaard, Vice President at Danish Crown and vice chairman of the Danish Agriculture and Food Council said: “If we can’t pay the right price for the slaughter pigs in Denmark, then they will go to Germany.

“If we don’t have the slaughter pigs in Denmark, then there is no work at the slaughterhouses and there is no revenue coming in to Denmark.

“Slaughter pig prices have to rise in Denmark.”

Over the last year the Danish pig sector failed to hit its forecast price quotations because of poor weather and troubled global economic conditions.

According to Karsten Flemin, an economist and analyst at the Danish Pig Research Centre, the forecast rise in prices did not occur because the barbecue season in June and July when pork sales are expected to rise sharply was hit by bad weather.

Over the year there was also a dramatic drop in the value of the Japanese Yen and the US dollar and sterling which hit export markets hard.

The Japanese market alone saw a loss of nearly 20 per cent – down by about ¥3.25 billion.

Danish pig meat exporters also saw a drop in exports to Russia, because of lower pig prices.

Across the year Danish pig producers are expecting to see prices of around 11.35DKK per kilo this year compared to 11.30DKK last year.

Speaking during the annual meeting and conference of the Danish Pig Research Centre in Herning,

Mr Flemin said that across Europe over the forthcoming year pig production looks as though it will remain fairly stable.