Danish Crown Reorganizes Business Centered on European Market… Aims for 50% High Value-Added Meat Sales by 2030

Danish Crown, a major Danish meat company, is focusing its business capabilities on the European market rather than global markets including Asia, and is moving to expand added value through meat processing and product development.

Danish Crown announced a reorganization plan on October 2 and stated that it would increase the proportion of high value-added meat supplied by member farms from the current approximately 25% to 50% by the end of 2030. To achieve this, seven of the existing eight business divisions will be integrated into a single organization.

Focus on the core European market rather than global business

To strengthen its position as a leading food company in Europe, the company has decided to reduce its focus on global business expansion and prioritize the European market. Going forward, the plan is to concentrate capabilities on six core markets and significantly reduce the number of brands to foster a small number of major brands.

This is not an announcement to suspend exports to Asia. The company's official announcement did not specify a suspension of exports to Asia or volume reductions by country.

From 25% to 50% of high value-added production

The core objective of the business restructuring is to increase the added value of meat supplied by member farms. Danish Crown plans to expand the proportion of high value-added products to 50% by the end of 2030.

This figure does not mean that the total slaughter volume or the sales proportion of processed meat products will double, but rather represents the company's goal of adding high value to the meat supplied to members.

Integration of 7 business divisions… Unification of manufacturing, sales, and product development

The seven business units subject to integration are Sokołów, Beef, Industry, Foods, KLS, UK, and ESS-FOOD. The integrated organization will jointly operate manufacturing, sales, and product development functions.

DAT-Schaub, responsible for the byproduct sales business, will be maintained as an independent business unit. Existing individual business unit representative positions will be phased out, and a global management structure encompassing countries and business areas will be expanded.

The new organization is scheduled to be fully operational within the next six months.

2024/25 Revenue 65.4 Billion Kroner… Profitability Under Pressure in First Half

Danish Crown's revenue for the 2024/25 fiscal year was 65.415 billion Danish kroner (approx. 13.11 trillion won), down from 67.812 billion kroner (13.6 trillion won) in the previous year. Earnings before interest and taxes (EBIT) were 1.631 billion kroner (327 billion won), and net profit was 788 million kroner (158 billion won).

The company explained the change in the payment method for additional settlements to members as the primary cause of the decrease in operating profit. Therefore, the decline in annual operating profit cannot be viewed entirely as a result of the drop in market prices.

Source: Danish Crown 2024/25 Annual Report. Operating profit is based on EBIT before special items.

Meanwhile, revenue for the first half of the 2025/26 fiscal year was 31.605 billion kroner, a 2.6% decrease compared to the same period last year, and operating profit was recorded at 631 million kroner. The company cited pressure on European pork supply, falling global market prices, and a decrease in sales volume as factors affecting performance.