Danish meat company Danish Crown is under pressure to maintain its position in the Danish and European pig market. Increasing competition and changing market conditions are forcing the company to strategically innovate, both nationally and internationally.
The Danish meat company Danish Crown is therefore looking for new markets in Africa for the sale of pork, while at the same time the company is closing a branch in China due to falling imports. The company is also under pressure from increasing competition on the European markets.
Danish Crown has announced the sale of its facility in Pinghu, China, as reported by two Scandinavian and Danish trade magazines ScanAsia and Foodorg. The decision follows a structural decline in demand for imported pork in China. The shift to locally produced pork products has undermined the profitability of the facility.
The closure reflects a broader trend of changing market dynamics in Asia. The closure of the Chinese facility could 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 group's international operations.
Africa is considered a promising growth market by Danish Crown. The group 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 the focus on Africa is also the increasing competition in the European markets. Danish Crown wants to partly compensate for these market conditions by diversifying into markets outside Europe. The company emphasizes that success in Africa will depend on the ability to supply products affordably and logistically efficiently. Collaborations with local partners are being considered to gain a foothold in the region.
Although the African market offers significant growth opportunities, there are also risks. Variable economic conditions and logistical challenges are potential obstacles. Danish Crown is aware of these risks, but emphasises that the potential of the African market is large enough to address them.
At home, Danish Crown is struggling with the fact that some of the largest pig farmers have left the group. This reinforces the need to further develop exports. The management of Danish Crown acknowledges that maintaining relationships with large producers is crucial for the long term.