Danish Crown leaves German market fresh meat

Danish Crown stops selling fresh meat in Germany, the company announces. This decision means that the production location in Oldenburg will close.

The location has not been profitable for several years. According to sales director Fischer Larsen, the German market is very competitive. In order to be able to earn in that market, being able to deliver large volumes is a requirement. Because the margins are very thin, costs must also be low to make a profit. Danish Crown is not able to do this sufficiently, as Larsen explains.

The company is not completely leaving the German market yet. Recently, there was a rumor that Danish Crown would want to sell the pig slaughterhouse in Essen to Westfleisch. Earlier this week, the company denied that rumor. The location had a loss of €15 million last year. The slaughterhouse has a capacity of 74,000 pigs, but only slaughtered 64,000 last year.

Matthijs Bremer

Matthijs Bremer is a market specialist in pork, beef, and poultry meat at DCA Market Intelligence. He also monitors the protein transition, keeping an eye on developments in cultured meat and meat substitutes.

m.bremer@farmerbusiness.com