Danish Crown to pay record US$18 million to cattle owners
Strong demand for beef in Europe drives major price rises and historic settlements
DENMARK – Danish Crown reported that revenue from its beef division rose from DKK 5,900 million (US$915 million) to DKK 6,771 million (US$1.05 billion) over the past financial year due to strong demand in both domestic and Southern European markets.
The average payout to cattle owners increased by 28 percent per kilo compared with last year, while prices at the end of the financial year were 48 percent higher than at the start.
The surge in payouts was driven by a decline in the number of cattle for slaughter across Europe, which prompted the company to increase the proportion of processed raw material and expand sales of branded products.
Danish Crown introduced a marbling bonus that can add up to 1.5 Danish kroner (US$0.23) per kilo for high‑marble beef, which helped meet demand in Southern European markets for premium cuts.
Despite strong results in Denmark, the company’s two German slaughterhouses and its hide-processing business, Scan-Hide, underperformed due to lower slaughter volumes and falling demand for leather in the automotive and furniture sectors.
The drop in German cattle slaughter, which fell by nearly 9% nationwide, reduced factory throughput and made operations less profitable, while limiting raw materials for Scan-Hide.
Danish Crown has initiated plans to improve operations at its German facilities and streamline cross-border processes to maintain supply efficiency and support ongoing settlements with cattle owners.
The company is also establishing a new factory in Vejen to produce burger patties for McDonald’s restaurants in Denmark, Sweden, and Finland, scheduled to start next summer.
The board proposed a balance payment of 110 øre per kilo delivered during the financial year, equivalent to roughly US$0.017 per kilo, totaling about US$18 million, pending approval at a shareholder meeting on 28 November.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
