Therefore, the Danish meat company Danish Crown is looking for new markets in Africa for the sale of pork, while simultaneously closing a facility in China due to declining imports. The company is also under pressure from growing competition in the European markets.
Danish Crown has announced it will sell its facility in Pinghu, China, according to reports from the two Scandinavian and Danish trade magazines ScanAsia and Foodorg. This decision stems from a structural decrease in demand for imported pork in China. The shift toward locally produced pork products has undermined the profitability of the facility.
The closure reflects a broader trend of changing market dynamics in Asia. Closing the Chinese facility may help Danish Crown free up resources for investments in Africa. The sale of the Pinghu facility is expected to contribute to a restructuring of the company’s international operations.
Africa is regarded by Danish Crown as a promising growth market. The company sees opportunities in the increasing demand for affordable protein sources in emerging African economies. According to analysts, Danish Crown is specifically targeting countries with growing urban populations and a rising middle class.
One of the reasons for focusing on Africa is also the increasing competition in the European markets. Danish Crown aims to partly offset these market conditions by diversifying into markets outside Europe. The company emphasizes that success in Africa will depend on the ability to offer products affordably and logistically efficiently. Partnerships with local players are being considered to establish a foothold in the region.
Although the African market offers significant growth opportunities, there are also risks. Variable economic conditions and logistical challenges present potential obstacles. Danish Crown is aware of these risks but stresses that the potential of the African market is substantial enough to face them.
In its home country, Danish Crown is struggling with some of the largest pig farmers leaving the company. This intensifies the need to further develop exports. Danish Crown’s leadership acknowledges that maintaining relationships with major producers is crucial for the long term.