Danish Crown closes abattoir, lays off 800 employees
Danish Crown has announced the proposed closure of an abattoir in the northern Jutland region of Denmark, risking 800 jobs.
The company said that the proposed closure is due to a 10% decline in the number of pigs being supplied for slaughter in Denmark over the past year. Danish Crown’s board of directors “sees no other option” than to close one of the group’s six abattoirs in Denmark.
As a result of the proposed closure, the 800 employees who work at the abattoir in Sæby, northern Jutland, face losing their jobs. The company states that it will need to take on 450 new employees across three of its abattoirs in Horsens, Ringsted and Blans, Denmark, within the next six months.
Per Laursen, VP of production at Danish Crown, said: “It is very sad that we have to say goodbye to so many skilled and loyal employees, but we are forced to react to such a marked decrease in the amount of slaughterings. Now, our surplus capacity is costing us more than DKK 300 million [approx. $44.1 million] a year, and it would be irresponsible in relation to the company and our owners if we didn’t take the steps which are necessary to address this challenge.”
According to Danish Crown, the decline in the number of pigs being sent for slaughter is partly due to a rise in inflation which has resulted in some Danish farmers closing their livestock operations. Another contributing factor is that some farmers are selling their pigs for export as soon as they weigh 30kg, due to high demand for ‘weaners’ from Poland and Germany, which generates good earnings for the farmers.
The company plans to reverse this development by increasing the settlement price paid to the cooperative owners for their supplies of pigs so that it matches the level paid in Germany and Poland and ensures that farmers can make money from fattening their pigs for slaughter.
Per Laursen continued: “What is so frustrating about this situation is that our employees’ performance has been exemplary, but in our industry, it is imperative that the abattoirs are run with very high-capacity utilisation because otherwise it simply becomes too expensive to slaughter every single pig. But it’s a heavy decision for us all.”
By Phoebe Fraser | FoodBev Media
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