The meat segment takes off, while the leather one slows down. Light and darkness for Danish Crown, among the top European players in the meat industry, which presented its financial results for the year 2018/2019. Overall, the results were positive, with revenue growing by 21% to reach 3.3 billion euro. The same can’t be said for Scan-Hide, subsidiary of the group that is specialized in raw hides and semi-finished leather.
Business under pressure
The group’s president, Erik Bredholt, explained that Scan-Hide’s difficulties are caused by “a 50% or-so decrease in the price of leather”. Danish Crown CEO, Jair Valeur, on the other hand, highlighted that “beef-related business is under pressure. The reason is that the volume of bovine meat products on the European market has increased. Irish producers have now also entered the market, as they look for alternative income due to Brexit”. On the other hand, US and South American beef has also been coming into European market, thus adding pressure. Light and darkness in all departments for Danish Crown, as the Denmark-based group continues to share its confidence and points out that “the group is constantly striving to increase the sales of byproducts as to utilize the animal in the best possible way with no waste”.
Image taken from danishcrown.com