Danish Ministry presents proposals to cut pig meat plant costs

By Gerard O’Dwyer, in Helsinki

- Last updated on GMT

Proposals have been made to try and help cut meat plant costs
Proposals have been made to try and help cut meat plant costs

Related tags Livestock Denmark Pig Pork

Denmark’s Ministry of Food, Agriculture and Fisheries has presented proposals which its minister Dan Jørgensen claims can help pigmeat exporters reduce processing plant costs and bolster competitiveness.

These are based on research conducted by the London-based PA Consulting Group, which compared the export controls cost base of Danish pigmeat plants with those in nearby states, including Poland, Germany and Ukraine.

A key suggestion is streamlining plant inspection procedures by public officials and veterinarians, which could, it said, produce cost-efficiency gains and reduce operating costs by DKK25m (US$4.61m) over four years. The Danish pigmeat plant sector currently spends more than DKK250m (US$46.1m) on export-centred facility health and safety inspection checks annually.

The ministry also proposed creating a working group tasked with analysing the cost base under which Danish plants operate to help develop further state-led cost-reduction initiatives.

Pigmeat giant Danish Crown, which slaughters around 15 million pigs in Denmark annually, welcomed the proposals. "It’s a step in the right direction to improve our competitiveness. Because we have sought a reduction of these costs for some time, we look forward to discussing the proposals with the minister,"​ spokesman Jens Hansen told GlobalMeatNews​.

"The competitiveness of meat processing plants in Denmark is under severe pressure. Our plan to reduce slaughter facility inspection costs is the government’s response to supporting companies in the sector. Our proposals help the pigmeat sector, but do not weaken Denmark’s strict food safety, animal health and welfare systems,"​ said Jørgensen.

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