Annual Report 2009/10

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| IT’S ALL ABOUT FOOD ANNUAL REPORT 2009/10

MEN OF THE WORLD Danish Crown likes to be there when business leaders and heads of state from all over the world meet. In April, the Russian president, Dmitrij Medvedev, visited Denmark, and

on several occasions during the year, officials from Denmark have visited other countries in the company of Danish Crown representatives.

- Relations are extremely important when op-

erating on the world market, and these meetings are therefore very valuable for us, says CEO of Danish Crown, Kjeld Johannesen.

Read more on page 12. |

CONTENTS

2| HOME

10| INTERNATIONAL 16| DEBATE

25| JOBS

32| CULTURE

BUSINESS

Responsible and difficult decisions had to be made in the course of the year, with DC Future setting the agenda. October saw the closure of the department in Rødding. |

During the past year, DC has built up a strong position for itself in Sweden. In August, the Swedish prime minister visited KLS Ugglarps. |

When you turn five, it needs to be celebrated with balloons and guests and cake.

Frida smiled happily when the world’s most modern slaughterhouse celebrated its fifth birthday in May. |

In June, Rasmus Kofoed could call himself the best chef in Europe after he won the Bocuse d’Or. Danish Crown was there as a sponsor. |

New accounting rules and much larger and more comprehensive financial statements characterise the pink pages of this year’s newspaper. The results were presented to the Board of Representatives on 2 January. |

Willingness to change

Danish Crown all over the world

A cooperative with values

The farmers that own Danish Crown have taken a keen interest in the discussions about the form of incorporation. In October, the Board of Representatives voted to form a limited company. |

The global workplace

Bringing DC quality home

Section 2

2 | HOME | WILLINGNESS TO CHANGE

HOME

WILLINGNESS TO CHANGE DC Future has succeeded in directing

the flow of pigs back to Danish Crown’s slaughterhouses. Eighteen months of hard work has produced results.

WHEN THE TIDE TURNS

PUBLISHED BY

Marsvej 43 DK-8960 Randers Telephone | +45 8919 1919 dc@danishcrown.dk www.danishcrown.com

A few days before I went on holiday last summer, a challenge landed on my desk. The sort of challenge I hadn’t encountered for a long time.

I needed to draw up a waiting list. A waiting list for pigs for slaughter, because registrations of new pigs for slaughter were coming in so fast that we couldn’t keep up.

All those who dropped by my office that day can testify to how happy I was, because it is no secret that the decline we have seen in recent years in the numbers of pigs for slaughter – and all the occasions we have had to say goodbye to colleagues elsewhere in the company – has been weighing heavily on our minds.

Crown. And that this way we could preserve Danish jobs.

Just before my summer holiday, we rounded the 1,000,000 mark for pigs for slaughter. This now means that 300-400 jobs in Denmark are safe.

There is no reason to skirt the issue: DC Future is working.

The waiting list no longer exists, because when a farmer wants to deliver his finishers to DC, then we will go to great lengths to ensure that he can. But the challenges are still there.

have done better than expected on seven of the nine points.

However, there are two areas where we are failing to deliver.

We will not manage to cut payroll costs by 20pc within the eighteen months – but my clear signal is that we will at some point. It is just taking slightly longer. Already now constructive discussions are taking place at a number of departments. Moreover, we also need to continue working with the political framework conditions.

Our world is one where the challenges never cease, and at the moment our owners are facing new challenges in the form of rising feed prices. However, this should not stop us from taking a short break and a deep breath or stop us from being grateful that our hard work is actually paying off. |

Kjeld Johannesen CEO DANISH CROWN A/S

This was just what we wanted to achieve when we launched DC Future. To be able to pay so much for the pigs that farmers in Denmark would choose to supply their animals to Danish

Even though costs have been reduced, earnings improved, the markets are with us and foreign exchange rates are favourable, we know from exper­ience that the market and the exchange rates will change.

And if we are to weather this situation well, we must achieve all the targets in DC Future.

When taking stock of the eighteen months with DC Future, we

EDITORS

EDITORIAL TEAM

PHOTOGRAPHY

IDEA AND CONCEPT

PRINTING

Editor-in-chief Anne Villemoes Director of Corporate Communications

Rune Jungberg Madsen Jan Fønss Bach Lisbeth Carøe Kirsten Meisner Thilde Danielsen Larsen Mette Sehested Christina S. Johansen Frank B. Winther Michael Borgen

Erik Zappon Per Gudmann Cphotography and others

Anne Villemoes / CZOO

Scanprint A/S

DESIGN AND PRODUCTION CZOO

WILLINGNESS TO CHANGE

| HOME | 3

A YEAR WITH DC FUTURE

DC Future has made its mark on Danish Crown in 2009/10. But not only on the company’s profit, which is the best in 20 years. The plan has also had an impact on both external and internal communication throughout the year.

The examples below illustrate the process. monthly pay ead more h

saturday slaughtering

FULL OF GOOD IDEAS OCTOBER 2009

On 17 September, Danish Crown opened the ‘my workplace’ email address minarbejdsplads@danishcrown.dk as an ideas box for employees to suggest how we can make it with DC Future. Subsequently, emails have been streaming in with useful input. Some of the proposals concern very local conditions, while others look at factors affecting the entire company.

Everything considered

- All ideas are welcome. Nothing is too big or too small because we are looking very carefully at everything that might help us to achieve our goals, says Kjeld Johannesen.

Both hourly paid and salaried employees have taken the time to send emails with good ideas for savings and rationalisations. |

Every year, Danish Crown spends DKK 1 billion on food safety.

MORE EFFECTIVE MEAT CONTROL Pressure from the industry persuaded the the Danish Ministry of Food, Agriculture and Fisheries to look at how the inspections could be streamlined. Competitiveness was suffering.

OCTOBER 2009

From 1 January 2010, a new organisation for the authorities’ meat inspection at the slaughterhouses must be in place, reports the Danish Ministry of Food, Agriculture and Fisheries.

This is happening following a study showing that it is pos­ sible to streamline meat inspections without slackening the high Danish food safety standards.

The study was conducted earlier this year on the initiative of the Danish Minister of Food, Eva Kjer Hansen, who heeded criticism from slaughterhouses and the industry that costs for public meat inspection have exploded in recent years, seriously impacting the competitiveness of Danish companies.

It is also resulting in the Ministry for Food, Agriculture and Fisheries establishing an independent organisation for meat inspection which will cover the entire country. At the same time, a management structure is

being set up which clearly places responsibility for productivity, budget, cost management and staffing levels, reports the Ministry of Food, Agriculture and Fisheries in a press release.

According to the press release, the study shows that considerable potential exists for reducing meat inspection costs by means of various administrative changes and restructurings. The study also shows that rationalisations can be implemented without compromising the high Danish food safety standards.

- By centralising the meat inspection, we can streamline our efforts and cut costs for the slaughterhouses while maintaining the quality of the inspections, says Eva Kjer Hansen in the press release.

The new meat inspection unit is being staffed with employees from the existing three food regions, which in future will constitute two strong regions – region ‘east’ and region ‘west’. |

OCTOBER 2009

FEBRUARY 2010

OCTOBER 2009 KJELD ON TOUR SEPTEMBER 2009 BOARD OF DIRECTORS AND THE BOARD OF REPRESENTATIVES SHOWING THE WAY

At the meeting of the Board of Representatives in Vejle last week, it was decided that both the Board of Directors and the Board of Representatives would reduce their remuneration by 10pc.

Over the next few weeks, Danish Crown’s CEO, Kjeld Johannesen, is visiting canteens at departments around Denmark.

OCTOBER 2009 FULL OF GOOD IDEAS Read above…

OCTOBER 2009 MORE EFFECTIVE MEAT CONTROL Read above…

OCTOBER 2009 STILL CHASING CUTS

In the past eighteen months, Danish Crown has closed ten departments and laid off 3,000 employees in its efforts to streamline the company.

This is one of the biggest rounds of job cuts ever for any Danish company.

FEBRUARY 2010 HALFWAY WITH DC FUTURE

At the last meeting on Tuesday, Danish Crown’s Board of Representatives was presented with a status for DC Future after the first nine months.

The barometer shows that all the hard work done by the organisation is bearing fruit.

Nine months into the eighteenmonth process, we are actually more than halfway to meeting a number of the targets.

4 | HOME | WILLINGNESS TO CHANGE HAULIERS SUPPORT DC’s FUTURE

MARCH 2010

- We support our customers because we couldn’t exist without the pig producers, says a haulier.

All the hauliers transporting pigs for Danish Crown have decided to support the company

in its endeavours to improve competitiveness.

Therefore the 20 hauliers decided that, even before a collective agreement had been signed for the transport area, they would forego a pay rise instead of passing the bill on to Danish Crown. |

WHAT IT COSTS MARCH 2010

Slaughterhouse workers’ pay is often debated in the press. Here are the facts.

For some time, the pay of slaughterhouse workers has often been mentioned in the press. Danish Crown’s staff magazine Krogen therefore decided to take a closer look at the figures.

Avg. hourly pay

Payroll statistics from the Employers’ Association of the Meat Industry detail what a slaughterhouse worker earns.

In Q4 2009, the average hourly pay looked as follows:

Piece-rate pay incl.

7pc increase in basic pay Hourly pay

DKK 119.54 6.20

Hourly supplement

54.65

Industry supplement

2.55

Freedom of choice under collective agreement

6.24

Avg. total hourly pay

189.19

Total cost

Now and then, even higher figures crop up in the debate. This is when a number of supple-

ments are included. Including nuisance supplements, holiday and bank holiday payments, pensions, personal supplements and ATP contributions, the worker’s hourly rate adds up to DKK 255.33 according to the pay statistics.

In addition, the company has a number of other costs, for example accident at work insurance, first and second days off sick, group life insurance and pension contributions during paternity/maternity leave.

This means that the company’s total costs per hour for a slaughterhouse employee total DKK 264.95. |

RELUCTANCE TO NEGOTIATE LEADS TO JOB LOSSES MARCH 2010

The Confederation of Danish Industry (DI) and the Danish Food and Allied Workers’ Union (NNF) did not succeed in reaching a new collective agreement.

Throughout the bargaining process, the parties were too far apart, and this is now costing Danish jobs.

DI and NNF were unable to reach agreement. Following the initial meeting with the Public Conciliator, Asbjørn Jensen, an extraordinary meeting was held between the union representatives and the Danish Crown management, at which the union representatives emphasised that they were unanimously backing a declaration of intent proposing a pay freeze

for 2010-2012 and a starting rate of pay for new employees.

Breach of trust

However, during the negotiations, NNF decided to ignore the declaration of intent from a large majority of its members.

- Together with our union representatives, we had given both our owners and employees reason to believe that we

would together find a solution which would take us as close as possible to the finishing line in DC Future – most recently at the meeting of the Board of Representatives at the beginning of February which was attended by all the union representatives. I am therefore both surprised and disappointed that the Danish Food and Allied Workers’ Union NNF did

not listen to its members, says Kjeld Johannesen, CEO of Danish Crown.

Plan B

A pay freeze was one of several elements designed to ensure fulfilment of the DC Future plan. Danish Crown must now therefore take the first step in its plan B, which will lead to Danish job losses.

MARCH 2010 MARCH 2010 POSITIVE FEEDBACK

In the past week or so, Danish Crown has received a wealth of positive comments from the company’s owners. Numerous emails have been sent to different employees and managers in the group following DC’s announcement on Monday 22 March. Here, we announced that the outcome of the collective bargaining will not stop us from achieving the goals outlined in DC Future.

- In the very near future, we must say good-bye to the first slaughterhouse employees, almost 600 in number. It is a great shame that the union has not realised the seriousness of the situation because, no matter what, we must fulfil the targets which we have outlined for our owners, says Kjeld Johannesen. |

APRIL 2010 MARCH 2010 RELUCTANCE TO NEGOTIATE LEADS TO JOB LOSSES See above…

MARCH 2010 WHAT IT COSTS See above…

MARCH 2010 HAULIERS SUPPORT DANISH CROWN’S FUTURE See above…

APRIL 2010 DANISH CROWN CUTS JOBS ACROSS DENMARK MARCH 2010 THROUGH THE OWNERS’ EYES

The Chairman of the Danish Bacon & Meat Council (DBMC) and Danish Crown Board member Asger Krogsgaard describes in the staff magazine Krogen how farmers see the current situation.

APRIL 2010 KJELD JOHANNESEN REGRETS DISMISSALS

APRIL 2010 ESBJERG UNION REP: - NOW WE’LL GET CRACKING

WILLINGNESS TO CHANGE

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STRONG INTERIM RESULTS AFTER ONE YEAR WITH DC FUTURE MAY 2010

On 5 May, Danish Crown presented strong interim results to the Board of Directors. With revenue of DKK 21.8 billion and a net profit of DKK 604.4 million, the company is demonstrating that competitiveness has been strengthened through the initiatives launched on all fronts in the past year.

kets where a considerably higher price can be obtained, says Kjeld Johannesen.

The Beef Division has also posted strong results in the past six months. Considerable cost cuts have been achieved, in particular as a result of the flagging-out of production, and both subsidiaries and processing facilities are at the same time reporting very satisfactory results.

- Most importantly, we are now competitive when it comes to the prices offered to members.

After a year with DC Future we can see that all group companies are as a minimum meeting the ambitious targets defined, and that some are even exceeding these targets, which is excellent, says Kjeld Johannesen, CEO of Danish Crown.

The DC Future plan was launched in May 2009 and is due to run for eighteen months to improve earnings and strengthen competitiveness to the tune of DKK 1.3 billion in all. In addition, political burdens of DKK 300 million will be removed.

Costs in the Pork Division have been reduced by DKK 0.30 per kg, and the Pork Div­ ision’s global sales strategy has proven its worth.

- We can conclude that we will achieve DC Future’s overall objectives, just as we promised the members. However, where some areas are contributing more than expected, other areas will take longer. Looking

- We are generally seeing very strong sales in the markets, and our approach means that we can target sales at those mar-

SATISFIED BOSS PRAISES MANAGEMENT

at payroll costs, they will be reduced by 10pc through streamlining and cuts, and here we must – as a result of the outcome of the collective bargaining process – find other ways of cutting the last 10pc, says Kjeld Johannesen.

pany has posted very impressive interim results with increased earnings in almost all markets and a markedly positive impact from the company’s streamlining measures. |

JULY 2010

- We are extremely pleased that all the work which has been invested in DC Future is now resulting in a marked increase in the number of pigs supplied to Danish Crown slaughterhouses, and that it translates into more Danish jobs, says Kjeld Johannesen,

Kjeld Johannesen explains the results to managers at management meetings.

JUNE 2010

- It’s going well. Keep up the good work. This is the message that Danish Crown’s top manager, CEO Kjeld Johannesen, has taken to meetings for DC managers throughout Denmark.

MAY 2010

MAY 2010 STRONG INTERIM RESULTS AFTER ONE YEAR WITH DC FUTURE See above…

In the short term, the result of the collective bargaining process will be offset by strong results, especially from the processing companies, with Tulip Ltd in the UK posting another set of excellent figures. At the same time, Tulip Food Com­

DC RECREATES 400 JOBS

After massive efforts throughout the past year, Danish Crown is now reestablishing 400 jobs in Denmark as well as an increased number of jobs at the com­ pany’s facilities abroad.

JUNE 2010 MAY 2010 SPRING IS AROUND THE CORNER Last week we were able for the first time in ages to increase settlements to the farmers by DKK 0.30. It does not sound like very much, but if you multiply it by the total number of kilogrammes of meat supplied by individual farmers, it adds up to quite a lot.

This is much-needed money in agriculture, and the significantly improved earnings will continue beyond the first half of the 2009/10 financial year.

SEPTEMBER 2010

JUNE 2010 2 KG MORE SAVES DKK 65,000

SEPTEMBER 2010 KEEPING THE PROPS TURNING

Refining daily routines benefits the bottom line.

Over the past eighteen months, together we have shown that we can navigate in a world where the conditions are changing all the time. We have shown that we can operate a fleet of vessels large and small, and ensured that they continue to steam ahead.

JUNE 2010 DC ESBJERG STOPS EVENING SLAUGHTERINGS

JUNE 2010 SATISFIED BOSS PRAISES MANAGEMENT Read above...

CEO of Danish Crown.

The purpose of DC Future is to strengthen the company’s competitiveness so as to ensure higher prices for members, and it is the improved competitiveness which is now attracting more pigs to the slaughterhouses. |

JULI 2010 DANISH CROWN RECREATES 400 DANISH JOBS See above…

6 | HOME | WILLINGNESS TO CHANGE

BUSINESS PRIZE FOR DC HADSUND 31.03.10

cheque for DKK 5,000 for the employees as well as a diploma and four icons for hanging on the walls for the management.

Every year, the Rotary Club awards a prize to a company which, in an exemplary way, stands out as a workplace in Hadsund. This time, Danish Crown in Hadsund won the prize which came with a

- Danish Crown in Hadsund is one of the biggest businesses in the area and demonstrates that total focus on customer wishes and requirements makes a company a worthy winner. Adhering to their motto ‘We do what

PRIZEWINNERS

The Rotary Prize was presented

by President Flemming Lindegaard to Factory Manager Jørn Sølvsten and union representative Laurids Rasksen.

others are unable or unwilling to do’, a competent and dedicated management and workforce have successfully developed a range of unique products at Danish Crown in Hadsund.

The special cuts and processed products are very popular in the export markets around the world, runs the justification for choosing DC as the winner. |

LOW-NOISE PRIZE FOR TULIP New routines and technical solutions have reduced noise levels by 25pc.

Safety 2009 award for their considerable efforts to reduce noise levels.

PRIZEWINNERS

The factory received the award because the employees have worked hard to cut noise throughout the facility. And it is an initiative with which every­ body has been actively involved.

- I am delighted that the employees have received the recognition they deserve for what they have achieved. Over the

December 2009 Employees at Tulip’s factory in Svenstrup near Aalborg have quietened themselves so much that they have won a prize.

Last week they were awarded the Occupational Health and

PRIZEWINNING CANDIDATES

Jakob Jensen and Martin Jensen awarded Study Project Prize

PRIZEWINNERS May 2010 A good and thorough piece of work. This is how Philip Bojtas, Technical Manager at DC Horsens, describes a bachelor project which two of DC’s aspiring engineers have submitted. And he is not the only one who is impressed with their work. Jakob Jensen and Martin Jensen have just been awarded the Study Project Prize of DKK 15,000 by the Danish Maintenance Association.

The idea of the project is to optimise the system which handles paper waste at DC Horsens. Both in terms of energy consumption, so the machine uses less energy for a given amount of waste, and also in terms of optimising machine maintenance, also to save energy. |

past five years, we have strived to improve the working en­ vironment in Svenstrup, and this work will continue with even more motivation, says Factory Manager Jan Thomsen, who adds that the noise level has been reduced by 25pc.

Better habits

The work to reduce noise levels has involved a combination of changes in behaviour and routines and new technical solutions.

The Occupational Health and Safety award is presented by the Working Environment Council, and it is the biggest honour a Danish company can receive within this field. This was the third year running that a company in the Danish Crown group received the award. Last year DAT-Schaub received the award, also for reducing noise levels, and two years ago the award went to Danish Crown for successfully reducing accidents at work. |

CLIMATE PRIZE FOR DANISH CROWN PRIZEWINNERS - You have done a good job for Danish Crown, and you have done a good job for the environment. This is why Realkredit Danmark is now presenting you with the ‘Smart Square Metres’ award. Thank you for all your hard work, and many congratulations, says Business Customer Manager Jacob Christensen Flarup.

He is standing in Reception at the slaughterhouse in Horsens together with Danish Crown’s Environmental Manager, Charlotte Thy, and Factory Manager Per Laursen.

In front of them are Head of Supplies Gregor Kaster, Project

Manager Jesper Frørup and Technical Manager Philip Bojtas, who were all involved in planning the slaughterhouse in Horsens and who are some of the brains behind the environment-friendly and energy-efficient facility.

- In our slaughterhouse operations, it is by cutting energy consumption in particular that we can do something for the climate and the environment.

This is something which we kept in mind when building the slaughterhouse in Horsens. Nothing must go to waste, and all our resources must be applied as intelligently as pos­ sible, says Charlotte Thy, Danish Crown’s Environ­ mental Manager.

Pork chops and the climate

The environmental impact of an ordinary Danish pork chop is 360 g of CO2 eq. This is the equivalent of either: -- drinking four cups of coffee -- driving 1 km by car -- hoovering for 25 minutes -- watching TV for 4 hrs and 45 minutes, or -- having a bath in a half-full bathtub (with water heated by district heating)

ROYAL ACCOLADE FOR THE SECOND TIME FOR DAT-SCHAUB DAT-Schaub is the first Danish company ever to have been awarded the King Frederik The Ninth’s Honorary Award for Meritorious Efforts for Danish Exportation twice.

PRIZEWINNERS 15.06.10 Yesterday, HRH The Prince Consort awarded the King Frederik The Ninth’s Honorary Award for Meritorious Efforts for Danish Export­ ation to DAT-Schaub. This means that the casings company is the first Danish company ever to have won the award twice.

The awards ceremony was held on board the royal yacht Dannebrog, with CEO Jan Roelsgaard and Head of Production Knud Andersen there to receive the award.

- It is a tremendous honour to receive the award, and unequivocal recognition that as an export company we have been able to take Denmark to a leading position within

our line of business, said Jan Roelsgaard after the ceremony, and continued: - We are extremely honoured to be receiving the award again. The last time was in 1988, since when we have used the award very actively in our marketing, most recently at the IFFA trade fair in Frankfurt. The award is a gigantic pat on the back, both for our employees and for our suppliers, the farmers.

DAT-Schaub enjoys a unique position in the world market for processing casings from pig slaughterhouses into a number of specialty products, including in particular natural casings for sausages, but also ingredients and raw materials for the pharmaceutical industry. |

By comparison, the environmental impact of one person flying to Thailand is 2 tonnes of CO2 – this corresponds to the environmental impact of 5,555 pork chops. |

This is how much CO2 Horsens is saving -- Current water consumption in Horsens is 197 litres per animal slaughtered. In 1974, the slaughterhouses used 1,000 litres per pig, which means that consumption has been cut by more than 80pc. In 2000, the average for Danish Crown as a whole was 210 litres, and savings in Horsens alone amounted to 53,300 m3. This equates to the annual water consumption of 380 families.

-- 2,000 low-energy motors save 1,200 MWh a year. This equates to the annual electricity consumption of 240 families – or 570 tonnes of CO2 a year.

-- Boilers are fired by animal fat, which is CO2neutral. A saving of approx. 5,000 tonnes of CO2 a year.

-- Modified cooling system design saves 4,100 MWh a year. This equates to the annual electricity consumption of 820 families – or 1,900 tonnes of CO2.

-- 20,200 tonnes of biological waste is sent to biogas plants, generating approx. 505,000 m3

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gas. This equates to the annual heating consumption of 268 families.

Heat recovery from the production processes totals 41pc, saving 17,300 MWh; this equates to the heating consumption of 850 families, and a reduction of 8,200 tonnes of CO2 a year.

Danish Crown uses ammonia as an en­ vironmentally neutral coolant, as opposed to freon-based coolants which are climate gases and more than 1,000 times stronger than CO2, and which are used extensively abroad.

95pc of the approx. four million pigs slaughtered in Horsens have been transported for a maximum of two hours before arriving at the slaughterhouse.

The whole animal is used, nothing is wasted.

All animal waste is sorted, some is turned into animal feed, some into fuel, including biodiesel produced by DAKA.

From the award ceremony on board the royal yacht Dannebrog. Jan Roelsgaard , Managing Director of DAT-Schaub, with Head of Production Knud Andersen and HRH The Prince Consort (right).

WILLINGNESS TO CHANGE

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ONLINE ANNUAL REPORT NOMINATED FOR AWARD Danish Crown’s annual report was impressively nominated as the year’s best ‘Informational website’.

PRIZEWINNERS 10.03.10 Creative Circle, a trade association for the Danish advertising, design and digital communication industry, has just published the nominations for this year’s Creative Circle Award.

Here, Danish Crown’s online annual report is shortlisted in the ‘Informational website’ category. The other nominees in this category are politiken.dk, Folketinget and Gyldendal.

To be shortlisted for a Creative Circle Award, the product must be original and inspiring, relevant in relation to the context and supremely executed.

See www.creativecircleaward.dk. |

The closing-down of Danish Crown in Rødding has been in the pipeline for eighteen months. The employees were first told in February 2009, and on 29 October 2010 the gates closed for the last time.

SOON EVERYTHING WILL FALL QUIET IN RØDDING Optimism, irritation and peace of mind. The feelings were mixed for the employees at Danish Crown in Rødding after the final closing date was announced.

28.09.10 - Of course we’ll find new jobs – we slaughterhouse workers are used to piecework so we’re flexible, says Jonny Larsen, who together with his colleagues is losing his job when the department in Rødding finally closes on 29 October.

The closure has been under way for eighteen months, ever since the employees were first told in February 2009. Back then, 308 men worked at the factory – now there are only 140 left. Of these, the union representative

and job bank manager, NielsHenrik Sørensen, expects that just 50-60 people will not have work to go to after 29 October.

Danish Crown always sets up a job bank when a department has to close to help employees find new work or embark on a training programme.

A one-off closure

It is slightly unusual when DC does not specify a final closing date for a department, and Head of Production Arthur Petersen emphasises that the closure of Rødding has been

something of a special case.

- It is very seldom that Danish Crown closes a department without announcing a final closing date, he says.

- However, because of the uncertainty about the number of pigs for slaughter in future, and consequently uncertainty about the future structure of the Pork Division, it was necessary – also to avoid bad investments – to postpone the decision on a final closing date. At the end of the day, Rødding’s production of salted goods

was not transferred to Esbjerg, as originally decided, but instead to Blans, where a new department is opening on 4 October this year, adds Arthur Petersen, while praising the employees in Rødding.

- We are well aware that it has been a frustrating situation for the employees in Rødding, and we greatly appreciate their loyalty and dedication throughout, he says.

Factory Manager Carl Jakobsen agrees:

- The employees have kept their spirits high right up until the end and thrown themselves into the work. And if it was necessary for them to work Saturdays, they have all shown up. They have quite simply been model employees! |

Danish Crown’s online annual report was nominated in the Informational Website category at this year’s Creative Circle Award. Other nominees were the newspaper politiken. dk, the Danish Parliament and the publishing house Gyldendal.

8 | HOME | WILLINGNESS TO CHANGE

12 kg of shoulder femur bones instead of 10 kg in each carton cuts costs by DKK 65,000 a year.

2 KG MORE SAVES DKK 65,000

MINISTER VISITS KINDERGARTEN FOR LUNCH Danish Minister for Domestic and Social Affairs Karen Ellemann enjoying lunch with the children at a kindergarten in Roskilde.

June 2010 A simple discovery has proved a real bonus for Danish Crown’s slaughterhouse in Horsens. Normally, cartons are packed with 10 kg of shoulder femur bones, but this was not the best solution at all. One day, Quality Assistant Per Frandsen lifted up a carton and felt the contents sliding around inside. He wondered why, and started testing various alternatives. The solution now is that each carton is packed with 12 kg of shoulder femur bones.

- This cuts costs by DKK 65,000 a year in Horsens alone, explains Per Frandsen.

This simple but ingenious idea from Horsens has now been implemented throughout Danish Crown and will result in total savings of DKK 230,000.

Moreover, the optimised solution means that the number of lorries delivering shoulder femur bones from Danish Crown can be reduced by 55, which obviously also reduces CO2 emissions. |

EMERGENCY HELICOPTER IN RINGSTED

The rescue services Falck land their emergency helicopter at the DC facility in Ringsted.

13.09.10 Recently, neighbours have seen a helicopter taking off from and landing at a site next to Danish Crown in Ringsted. This is not because the slaughterhouse has started flying in pigs for slaughter. Rather, DC has made an agreement with the rescue services that Falck can use some of the slaughterhouse’s land as a landing pad for the emergency flying doctor helicopter service, which covers all of Zealand, including the Greater Copenhagen area and the islands of Lolland-Falster.

The slaughterhouse in Ringsted only takes up about a quarter of the plot. The rest of the land is leased to a farmer and to a small airfield – and this is where the helicopter takes off from and lands, which it has done an average of 2.6 times a day since May. - We were told that Ringsted would be the optimum base for the helicopter service. We make nothing from this arrangement; as a responsible company, we are only too pleased to be able to help in this way, says Peter Jensen, Head of Office at Ringsted. |

29.10.09 Tulip was in charge of the hot food on Tuesday when the Danish Minister for Domestic and Social Affairs Karen Ellemann visited a kindergarten in Roskilde to hear more about its experiences with food served at institutions.

Together with three other institutions in the Municipality of Roskilde, the kindergarten Firkløveren has, for a trial period, had food delivered by the catering company Fru Hansens Kælder, to which Tulip supplies cold cuts as well as hot dishes. The arrangement has been so successful that most of

the institutions in Roskilde will introduce a similar model in the course of 2010 – and this is a very good thing indeed, was the unanimous verdict from children, staff and the parents’ committee.

Fru Hansens Kælder works with big suppliers such as Tulip, but we have been very positively surprised, says Thomas Kyllesbech, a member of the parents’ committee. |

- The parents were very sceptical initially. Not least because

FARMER MEETS QUEEN 29.07.10

unlike our international colleagues, we are in full control of the value chain. From the moment the pig is born until it ends up on supper tables in Japan, the USA, Russia or some remote corner of Denmark, says Søren Bonde, who is a member of Danish Crown’s Board of Representatives.

Queen Margrethe recently visited Patriotisk Selskab to mark the society’s bicentenary. Patriotisk Selskab is a Danish society offering consultancy for large-scale agricultural businesses. The Queen is patron of the society, and during her visit she spent some time talking to Søren Bonde, its Deputy Chairman.

- I told the Queen about my production and about being a member of Danish Crown. I told her that, in my view, we own the best slaughterhouse business in the world, and

Søren Bonde, a member of Danish Crown’s Board of Representatives, meets HM Queen Margrethe at Patriotisk Selskab’s bicenten­ary celebrations.

Outside the society’s offices, a buffet was served in specially erected marquees. And at the small tables, the Queen and the other visitors could take a closer look at products from Crown of Cooking and Danepak. |

HIGH SPIRITS FOR SLAUGHTERHOUSE MARATHON 31.05.10 Despite heavy rain, spirits were high among the 150 runners participating in a marathon organised around the slaughterhouse in Horsens, an event which marked the end of the factory’s five-year anniversary celebrations. In fact,

there was a great atmosphere, and there was no shortage of cheering supporters along the 1,400-metre circuit – and cheers are just what you need during a marathon.

- The spectators makes a huge difference, says union representative Lars Mose, the chief

organiser of the event who is an extreme runner himself.

The 150 runners included 25 from DC. One relay team consisted exclusively of DC employees calling themselves Krone 1 – or ‘Crown 1’. Another team was a mix of administrative and production

employees. However, it was another DC employee,Thomas Lassen from the Planning Department, who was on the winning relay team.

The run was organised by Horsensrun and was also the regional DGI marathon championships. |

10 | INTERNATIONAL | DANISH CROWN ALL OVER THE WORLD

INTERNATIONAL

DANISH CROWN ALL OVER THE WORLD Danish Crown is a company to be reckoned with in the international market. To preserve Danish jobs, labour-intensive activities must be transferred abroad.

PRIME MINISTER VISITS SLAUGHTERHOUSE On Tuesday afternoon, prom­ inent visitors descended on the Ugglarps slaughterhouse, which is owned by Danish Crown’s Swedish subsidiary KLS Ugglarps.

18.08.10 Under the eyes of the media, the Swedish prime minister, Fredrik Reinfeldt, dropped by the Ugglarps slaughterhouse in southern Sweden, which is part of KLS Ugglarps, Danish Crown’s subsidiary.

The idea was to hear more about the company’s apprenticeship programme which has been devised in collaboration with the Municipality of Trelleborg to help young people find a job and also to contribute to attracting qualified labour to the slaughterhouse. The apprenticeship programme is targeted at unemployed young people aged between 18 and 30. So far, two groups have completed the programme, with eight out of twelve subsequently being offered permanent employment by the Ugglarps slaughterhouse.

- The prime minister wanted to know more about our ap-

prenticeship programme and how it works because it is very much in line with the Swedish government’s strategy of supporting job creation in the private sector in Sweden, explains Johan Andersson, CEO of KLS Ugglarps.

He welcomed Fredrik Reinfeldt to the slaughterhouse himself together with the factory management and two young apprentices.

- As part of the guided tour, the two apprentices showed a very interested prime minister how to debone a pig, while also talking to him about the programme as a whole, which he found very impressive, says Johan Andersson. |

Standing in the front, from left: CEO Johan Andersson, Factory Manager Anders Lundbladh and Swedish prime minister Fredrik Reinfeldt.

DANISH CROWN ALL OVER THE WORLD

DANISH CROWN MERGES SWEDISH COMPANIES Formal merger of Svenske KLS, Ugglarps and DC Livsmedel took place today.

13.11.09 KLS Ugglarps is the name of the second-largest slaughterhouse business in Sweden. The new company is now a reality after KLS, Ugglarps and DC Livsmedel were today formally merged following approval by the Swedish authorities.

The three companies were all previously owned by Danish Crown, and are now part of KLS Ugglarps, which is wholly owned by Danish Crown.

- This is a formal merger because the three companies have in reality been closely linked from the outset. We have just been awaiting official approval from the Swedish au-

thorities, says Karsten Deibjerg Kristensen, CEO of DC Nordic.

Improved resource utilisation

The new company capitalises on the possibilities inherent in having a simplified structure within administration and accounting as well as the advantage of having more closely coordinated purchasing and sales functions. As a result, planning will be improved, which altogether means that resources will be used more expediently.

Facts about KLS Ugglarps

KLS Ugglarps is now Sweden’s second-largest slaughterhouse enterprise with facilities in Ugglarps near Trelleborg and in Kalmar. Each year, the company slaughters more than 500,000 pigs, approx. 52,000 cattle and approx.

20,000 sheep and lambs. The factory has more than 400 employees.

Facts about Team Ugglarps

Team Ugglarps is a cattle slaughterhouse in Hörby, also in southern Sweden.. The company has approx. 60 employees and each year slaughters approx. 65,000 cattle, including approx. 37,000 contract slaughterings.

The cattle slaughterhouse Team Ugglarps was previously a subsidiary of DC Livsmedel, and is now a subsidiary of the new company KLS Ugglarps. |

An agreement with fifteen organic pig producers in Sweden means that Friland will in future be in charge of selling about three quarters of the organic pigs produced in Sweden.

However, most of the pork is expected to be sold to Swedish retailers and the Swedish processing industry. Friland is currently engaged in negotiations with these parties.

More exports

KLS Ugglarps already slaughters just under 2,000 organic

pigs, so with the new agreement, the total number of slaughterings in Sweden will be almost 17,000 pigs.

The agreement means that Friland will handle sales of the Swedish pork both in Sweden and in the export markets.

The Swedish pigs also increase Friland’s export opportunities in that – unlike Danish pigs – they can be exported to customers in the UK who demand approval by the Soil Association, the UK’s leading organic organisation. The private Swedish inspectorate KRAV can – unlike its Danish counterpart – issue approvals which are recognised by the Soil Association. |

KLS UGGLARPS AND ATRIA IN DEBONING PARTNERSHIP 09.09.10 KLS Ugglarps has entered into a partnership agreement with Atria Supply, a Swedish food company, under which Atria Supply will help KLS Ugglarps

with some of its deboning work over the next two years.

The agreement runs from 4 October, and during the initial period, KLS Ugglarps employees will be on hand at Atria to ensure an optimum start-up.

26.08.10

- We are extremely pleased with our growth plan which is producing some very satisfactory results. It looks as if we are ahead of schedule in a number of areas, and this is helping to strengthen our competitiveness in Sweden where we started out as a small no. 2, but where we have now grown into a strong no. 2, says Karsten Deibjerg Kristensen, CEO of DC Nordic.

KLS Ugglarps is Sweden’s second-largest slaughterhouse enterprise with facilities in Ugglarp near Trelleborg and in Hörby (cattle slaughterhouse). Each year the company slaughters more than 500,000 pigs, approx. 70,000 cattle and approx.

20,000 sheep and lambs. It has about 450 employees. |

13.04.10

17.12.09

The agreement concerns the slaughtering of approx. 15,000 organic pigs a year; from the beginning of 2011, most slaughterings will take place at

KLS UGGLARPS GROWING IN SWEDEN

KLS UGGLARPS BOOSTS PRODUCTION IN A DECLINING MARKET

Friland is strengthening its position as one of Europe’s leading suppliers of organic pork following the conclusion of a new agreement with organic pig farmers in Sweden.

KLS Ugglarp's slaughterhouse in the Swedish town of Kalmar.

KLS Ugglarps and Friland are both subsidiaries of Danish Crown.

GROWTH IN SWEDEN

According to the most recent official statistics from the Swedish Meat Industry Association for Q2 this year, KLS Ugglarps’s share of Swedish slaughterings is markedly up relative to the same period last year. Thus, the number of pigs slaughtered is up 20pc, the number of cattle is up 11pc, while the number of lambs is up by as much as 21pc.

FRILAND TO SELL SWEDISH ORGANIC PIGS

An agreement with fifteen organic pig producers in Sweden means that Friland will in future be in charge of selling about three quarters of the organic pigs produced in Sweden. This strengthens Friland’s position as Europe’s leading supplier of organic pork..

| INTERNATIONAL | 11

- We are receiving more pigs for slaughter, and by moving some of our deboning activities to Atria we will be able to maintain the pace. We are pleased that demand for our meat is increasing, and we are

working to expand our business based on growth, says Johan Andersson, CEO of KLS Ugglarps. |

KLS Ugglarps, which is part of DC Nordic, has very successfully realised its ambition of increasing the number of cattle and pigs slaughtered on the Swedish market. Slaughterings at the Kalmar and Ugglarp facilities in the first three months of 2010 compared with the same period last year are up by approx. 12pc for cattle, 24pc for pigs and 19pc for lamb. This is despite pig production in Sweden falling by 4pc in the same period.

- We have had a clear strategy of significant growth in the Swedish market, and I am therefore very grateful for the confidence which the Swedish producers have shown in us, says Karsten Deibjerg Kristensen, CEO of DC Nordic.

- We want to be the most attractive business partner for Swedish pig, cattle and lamb producers. We are therefore counting on taking a very offensive approach vis-à-vis the competition and paying good prices for the animals, says Johan Andersson, CEO of KLS Ugglarps. |

SCAN-HIDE TAKES OVER SWEDISH KONTROLLHUDAR INTERNATIONAL 21.10.09 Scan-Hide has taken over the Swedish company Kontrollhudar International (KHI), which will become a wholly owned subsidiary of Scan-Hide. At the same time, the former owner of KHI, Scan AB, will become a member of Scan-Hide as well as having a position on the Board of Directors.

- With the consolidation of Scan-Hide, we will become one of the biggest suppliers of hides in Europe, and this is a good starting point for acting in an intensely competitive market, says the Chairman of Scan-Hide, Lorenz Hansen.

With the takeover of KHI, Scan-Hide is increasing its raw material supplies by 30pc and now expects to process 1.2 million hides a year. Today, KHI has 31 employees who process about 90pc of the hides in the Swedish market.

In the longer term, a large proportion of the Swedish production will be transferred to Denmark. |

12 | INTERNATIONAL | DANISH CROWN ALL OVER THE WORLD

AROUND THE WORLD THIS YEAR’S CHRISTMAS SHIP TO RUSSIA 10.12.09 The words Novaya Zemlya written in large letters adorn the bow. The ship is moored in the east harbour in Aalborg, and loading is in progress. On the quays, trucks are zig-zagging around, negotiating containers and pallets with boxes of meat from Danish Crown. Just under 105,000 boxes must be loaded, or 2,431 tonnes of necks, shoulders, hams, fore-ends and various other cuts. The destination is St Petersburg in Russia. And the ship must dock there by Christmas, explains Jens Rahbek, Danish Crown’s Export Manager.

- This is the last ship this year. And it will be loaded with food for the Russian Christmas, which falls in the second week of the new year. It has almost become a bit of a tradition, us sending off a Christmas ship. And as long as the weather holds, there shouldn’t be any problems this year either, says Jens Rahbek. |

SAFETY GEAR FROM HOLSTEBRO TO CUBA 21.07.10 Just over 300 chain mail gloves and 125 vests from DC’s closed-down slaughterhouse in Holstebro are destined for Cuba.

Gunnar Andersen, workplace union representative at Cheminova in Harboøre in western Jutland, is also involved in humanitarian work. At a conference in Copenhagen he met five Cubans who were on the lookout for chain mail gloves.

- I then contacted Danish Crown, and it turned out that quite a lot of gear from Holstebro could, for various reasons, not be reused at Danish slaughterhouses, but it is all in perfect order and can make a big difference on Cuba, says Gunnar Andersen. |

Kjeld Johannesen having a lively chat with Russian president Dmitrij Medvedev, and Danish prime minister Lars Løkke Rasmussen.

Photo: Claus Bjørn Larsen.

Danish equipment will be sent to Cuban slaughterhouse workers.

WORLD’S LONGEST PORCHETTA WITH DC MEAT 07.06.10 It was one of Danish Crown’s customers, the Italian com­pany Lorenzi, which last Saturday produced the 30-metre-long Porchetta which will now make it into the Guinness Book of Records.

A Porchetta is an Italian speciality made from neck of pork and herbs rolled into middle cuts and prepared on a barbecue.

- The middle cuts were supplied by Danish Crown, which also sponsored the necks of pork. All proceeds from the sale of the Porchetta will go to the Italian leukaemia foundation, and everything was sold in just 40 minutes, recounts Martin Thomsen from Danish Crown in Chiasso, the company’s sales office in the Italian market. |

JOHANNESEN MEETS MEDVEDEV The Russian president, Dmitrij Medvedev, met Kjeld Johannesen during his visit to Denmark.

29.04.10 The Russian president, Dmitrij Medvedev, has just been on a historic state visit to Denmark and held numerous meetings with politicians and official representatives. In this context,

a large-scale Danish/Russian business conference was held yesterday, at which Kjeld Johannesen, CEO of Danish Crown, had the opportunity to meet Dmitrij Medvedev while talking to the Danish prime minister, Lars Løkke Rasmussen.

- Russia is one of the top five markets for Danish Crown, and in the past year we have doubled our pork exports to the country. This has happened concurrently with a significant increase in exports of both genetics and knowhow, which

all in all is helping to strengthen our close relations with our Russian trading partners, says Kjeld Johannesen. |

DANISH CROWN ALL OVER THE WORLD

| INTERNATIONAL | 13

BOIZENBURG SETTING NEW RECORDS

FULL ACCESS TO RUSSIAN MARKET FOR DC BEEF 20.07.10 Danish Crown’s Beef Division is benefiting from having re-established full access to the Russian market for exports of meat from animals over 48 months old. For fourteen months, it was impossible to export meat from slightly older animals because of prolonged negotiations between Brussels and Moscow to obtain the necessary veterinary certificates.

Even if the animals had been tested for BSE. Russia only accepted meat from BSE-tested animals aged 30 months or older. However, since 1 March the certificates have been in place, which has led to hectic levels of activity in both the sales and the shipping departments.

More than 30,000 fore-ends a day. Five days a week. All year round. Things are moving fast at the Danish Crown facility in Boizenburg. Really fast.

15.07.10 Danish Crown opened the factory in the German town of Boizenburg in April 2003. The target was to debone 30,000 fore-ends a week from Danish Crown’s pig slaughterhouses in Denmark. Since then, there has been a steady rise in the number of fore-ends handled corresponding to a five-fold increase at the factory, which is situated in central Germany between Berlin and Hamburg.

The 300 employees work two shifts and debone about 2 mil-

lion kg of fore-ends a week.

This equates to 8-9 million fore-ends a year.

Perfect routines

- It’s going really well. We are fully manned at the moment, our employees are very skilled, and no cutting tables are idle. We normally handle 160-165,000 fore-ends a week, but recently we hit the 195,000 mark in a week where we also worked on the Saturday, explains Factory Manager Ole Lyngesen, who is very pleased with developments.

- This routine ties in perfectly with the transport of fore-ends from the Danish slaughterhouses. The fore-ends cut by the day shift in Denmark are deboned by the night shift in Boizenburg. The German day shift then receives fore-ends from the night shift in Denmark, so there is a continuous flow of fresh raw materials for further processing at the factory, says Ole Lyngesen.

Each day, sixteen or seventeen lorries carrying fore-ends from Denmark pull up at the factory,

and at least 20 lorries roll out the other end. From here, deliveries are made to customers all over Europe. |

The 300 employees in Boizenburg work two shifts and debone about 2 million kg of fore-ends a week.

SOKOŁÓW IS MOST WELL-KNOWN MEAT BRAND IN POLAND The Sokołów brand is a guarantee of quality, food safety and healthy eating, according to a Polish trade magazine.

Consumers in Poland mention Sokołów, Danish Crown’s Polish subsidiary, when asked to name the meat brand they know best.

17.06.10 Danish Crown’s Polish subsidiary is known as a modern and innovative food company setting new standards within both product development,

production and marketing in Poland. In line with expectations, the company is ranked an impressive no. 1 and 2 in a survey conducted by a Polish trade magazine. As many

as 46pc of consumers mention one of Sokołów’s products first when asked which brands of cold cuts or meat they know.

As for the Sokołów name itself, 38pc of consumers mention it in the survey, which is enough to be ranked as both no. 1 and no. 2 – well ahead of the competition.

- The Sokołów brand is a guarantee of quality, food safety and healthy eating, says the magazine in connection with the large-scale Polish consumer survey. |

- We have been able to increase our exports considerably. At the same time, it has relieved some of the pressure on our production because we no longer have to separate the meat from animals under 30 months and over 48 months, says Jacob Rahbek Pedersen, Export Manager in Danish Crown’s Beef Division.

More improvements in sight The reason for the rather difficult situation goes back to early 2009. On 1 January last year, the European Commission increased the BSE testing age from 30 to 48 months for normal animals to reduce the number of tests and cut costs.

Unfortunately, new veterinary certificates to match the new requirements were not issued simultaneously, prompting the Russians to exclude meat from older animals.

In the meantime, the meat was sold in other European markets, and looking back, this proved to be a fortunate move by the Beef Division.

Jacob Rahbek Pedersen looks forward to an improvement of Danish Crown’s opportunities for exports to the attractive Russian market next month. This will happen when – following an almost ten-year ban due to the fear of BSE – it will again be possible to export meat with bones. |

14 | INTERNATIONAL | DANISH CROWN ALL OVER THE WORLD DANISH BONES POPULAR IN THE USA Danish Crown products in more than 32 million meals in the USA last year.

22.02.10 US consumers love sinking their teeth into baby backribs and spareribs. And fortunately, they prefer products from Denmark when after some particularly good meat to put on their plates.

Thus, more than 5,500 restaurants all over the USA are supplied with Danish Crown products. Last financial year, they prepared more than 22,500,000 portions of baby backribs from Danish Crown for hungry diners. And the same restaurants served well over 3,300,000 portions of flat bones from Danish Crown.

In 2009, Danish Crown also supplied the equivalent of almost 6,000,000 portions of spareribs, which were primarily sold via US supermarkets. All in all, this added up to more than 32 million servings last year. |

A BETTER LIFE AS Tomasz Przybylak has chosen a life as a contract worker to be able to give his children the life he thinks they deserve.

June 2010

Danish Crown products were important ingredients in more than 32 million servings at US restaurants last year.

In Denmark, contract work is a despised term, but just south of the border this is not the case

The acquisition of Nietfeld strengthens Tulip’s position in Germany considerably.

at all. In Germany, there are thousands of contract workers who often come from eastern Europe.

Tomasz Przybylak is one of just over 300 contract workers at Danish Crown in Boizenburg.

He is 35 years old, married and has an eleven-year-old daughter and a seven-year-old son.

He lives with his family in a house in a Polish town near the German border. Each week, from Monday until Friday, he goes to work in Boizenburg in order to be able to give his children what he calls a decent upbringing.

A better life

- By working in Germany, I earn four times as much as I

DANISH CROWN ALL OVER THE WORLD

| INTERNATIONAL | 15

Tomasz Przybylak, 35, spends only weekends with his family; during the week he works for Danish Crown in Boizenburg. Still, he does not want to swap his job for one in Poland.

Danish Crown in Boizenburg is one of Danish Crown’s most productive German facilities.

The 300 employees debone about 2 million kg of fore-ends a week.

This equates to 8-9 million foreends a year.

A DC CONTRACT WORKER would be able to if I had a really well-paid job in Poland.

So the life which I can give my family is much better when I work here than if I was working in Poland, explains Tomasz Przybylak.

With a job in Poland he would just about be able to get by and pay most of the bills. But there wouldn’t be a lot of money left

over, and he would not be able to afford the sort of life which he feels that his children deserve.

Bought a house

Three years ago Tomasz travelled to Nykøbing Mors in Denmark to work at Danish Crown’s slaughterhouse. He worked in Denmark for a year, and with his pay Tomasz Przyb-

ylak was able to buy a house in Poland. However, there was a price to pay.

- I only saw my family for the weekend every four or five weeks, or during the holidays.

I was, after all, working 1,000 km from home.

Off to Germany When

Danish

Crown

in

Nykøbing Mors closed down in 2008, Tomasz Przybylak knew what he wanted to do.

He contacted the company Mroz, which hires contract workers for DC’s German departments.

- I went to Mroz because I knew they had people working for Danish Crown in Germany, says Tomasz Przybylak.

TULIP GROWING IN GERMANY Today, Tulip Food Company has acquired German Nietfeld, which will take revenue to more than DKK 1 billion in Germany.

11.02.10 The best of two worlds met when the Tulip Food Company management and the owners of Nietfeld Feinkost today signed the agreement which means that Tulip Food Company is taking over Nietfeld as from 1 January this year.

Following the acquisition, Tulip’s annual revenue in Germany will hit the DKK 1 bil-

lion mark, and Tulip’s CEO, Flemming N. Enevoldsen, is convinced that Nietfeld will strengthen Tulip considerably.

- The company is a perfect match for Tulip. Both companies enjoy a reputation as suppliers of quality products and with strong customer focus. By combining Tulip’s and Nietfeld’s product ranges, we will at the same time create a company which will be offering a

far wider choice for consumers than is the case today, he adds.

“Tulip was our first choice”

Nietfeld’s previous owner, Gottfried Nietfeld, is looking forward to the new opportunities which will open up for the family business as a part of Tulip.

- When we decided to look for a new owner for Nietfeld, it was important for us that it should be a company which shares our values. We are strongly committed and assume responsibility for both our customers and our employees. The same is true of Tulip, which was our first choice, and I am therefore incredibly happy that we have found a solution with Tulip, says Gottfried Nietfeld. |

Shortly afterwards, Tomasz Przybylak started work at DC in Boizenburg, and he is in no doubt that he prefers his job in Germany to the one in Denmark.

ily while at the same time giving them a good life, he says. |

- Pay levels are not as high here as they are in Denmark, but still very much better than in Poland. And then I am able to spend more time with my fam-

Facts about Tulip Food Company Tulip has revenue of almost DKK 5 billion and approx. 2,000 employees.

Following the takeover of Nietfeld, Tulip has ten factories. Six in Denmark, three in Germany and one in Sweden.

Tulip is a leading supplier of bacon, sausages, cold cuts and canned products.

See Tulip’s website.

Facts about Nietfeld Nietfeld was founded in 1967, but the factory was rebuilt and modernised after a fire in 2005.

The factory has 238 employees.

In 2008, the company posted revenue of EUR 58m (DKK 431m).

Nietfeld produces a wide range of cold cuts and a broad programme of fried convenience products.

16 | DEBATE | A COOPERATIVE WITH VALUES

DEBATE

A COOPERATIVE WITH VALUES Traditions should not be

obstacles. Danish Crown’s owners have decided to form a new limited company – without sacrificing the company’s values.

DEBATE ON STRATEGY AND INCORPORATION PROGRESSING

DC’S BOARD OF REPRESENTATIVES INITIATING STRATEGY DEBATE On the agenda for the meeting of DC’s Board of Representatives in February was an open discussion of future scenarios for DC’s development.

04.03.10 What is the future shape of DC? This was discussed by Danish Crown’s Board of Representatives at its meeting in February, which marked the start of this year’s strategic work. More over, the Board of Representatives discussed the challenges which the future will bring, including issues such as the long-term corporate structure, financing model and the direction in which the company will develop. The debate will be followed up at other meetings in the course of the year.

DC’s Board of Directors has no fewer than six new mem-

How should DC’s new strategy DC2015 be financed? This was discussed at Wednesday’s meeting of the Board of Representatives.

bers. The Board of Directors therefore took the opportunity to present the new members to the Board of Representatives, including the two new external board members. The new members were well received by the Board of Representatives. The meeting included a status on DC Future, which is progressing according to plan in most areas. DC has had a good start to the year, also in terms of financial results.

09.09.10 At Wednesday’s meeting of Danish Crown’s Board of Representatives, the debate concerning the company’s structural development went one step further. The group is having to renew its strategy for the period up until 2015, and in this context it was important to take a close look at the financing of any growth strategy.

Many members of the Board of Representatives expressed considerable frustration at the framework conditions under which Danish meat producers operate, including the risk of new restrictions which will hamper the scope for development in the agricultural sector. |

- Structural renewal and financing are inextricably linked. When we adopted our processing strategy in 2000, it was financed through contributions to the personal accounts. Without that decision, we would today not have had our activities in Poland, the UK, Sweden and

Germany to some extent. These are activities which are now making a very positive contribution to the company’s overall results. In connection with preparing the DC2015 strategy plan, the financing of future growth is an obvious item on the agenda, says the Chairman of Danish Crown, Niels Mikkelsen.

Over the summer, both the future strategy and a possible new form of incorporation have been discussed at district meetings where members were presented with the overall issues. The feedback from the meetings was included in the debate at the meeting in Vejle, and the Board of Directors and the Board of Representatives will be working further to make a decision some time this autumn. |

MASSIVE YES TO DANISH CROWN A/S Representatives, and it was also debated at this summer’s meetings for members across the country, culminating in today’s decision to establish Danish Crown A/S.

The decision to turn Danish Crown into a limited company was fully endorsed by the Board of Represen­ tatives.

- It is a question of ensuring that we have the tools which will be needed in the long term to fulfil the growth strategy adopted by the Board of Representatives. Initially, we have decided to set up a limited company, which will open up other options in the longer term. However, these are options which must now be analysed in greater detail. The options must be discussed with members, and will also have to be adopted by the Board of Representatives, says Niels Mikkelsen.

Randers, 13 October 2010 Danish Crown’s Board of Representatives today voted massively in favour of the formation of a limited company.

- In practice, the decision made today does not entail any changes for the company’s owners. What it means is simply that the cooperative will establish a limited company which will be wholly owned by the cooperative. The limited company will thus not replace the cooperative in any way, explains Niels Mikkelsen, Chairman of the Board of Directors of Danish Crown.

The proposal has been debated by members since February this year when it was presented at a meeting of the Board of Representatives. Since then, it has been on the agenda of all meetings of the Board of

At today’s meeting, the plan for the coming years – DC2015 – was also presented and met with praise and unanimous support from the Board of Representatives. |

Chairman of the Board of Directors Niels Mikkelsen

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18 | DEBATE | A COOPERATIVE WITH VALUES FIRST WOMAN ON THE BEEF PRODUCER COMMITTEE 08.04.10 A couple of fields separate Søndergård from the town of Vroue in central Jutland.

Søndergård is a farm with a dairy herd of 135 black-andwhite cattle run by Britt Brøchner-Nielsen and her husband Poul-Erik Iversen.

- This is my whole life. I live for my animals and thoroughly enjoy my working day on the farm, says Britt Brøchner-Nielsen.

Britt Brøchner-Nielsen has for many years sought political influence beyond her own field boundaries. Since 1998, she has been a member of Danish Crown’s Board of Representatives, she is a member of Arla’s Board of Representatives and she sits on the board of the central Jutland association of foresters. In January, she was elected as a member of Danish Crown’s I&K Udvalg, of the Cattle Forum and, as the first woman ever, of the Beef Producer Committee. |

NEW MEMBERS OF DANISH CROWN’S BOARD OF DIRECTORS Danish Crown has two new board members.

14.12.09 At an election committee meeting in Randers today, Cay Wullf Sørensen, Grenaa, and Palle Joest Andersen, Hjørring, were elected for a three-year period. They replace Niels Jakob Hansen and Karl Kristian Andersen, who both decided not to stand for re-election at the recent district meetings.

Cay Wullf Sørensen has been a member of Danish Crown’s Pork Producer Committee for three years, and has acquired in-depth knowledge of Danish Crown.

Cay Wullf Sørensen, Grenaa.

Palle Joest Andersen, Hjørring.

involved in the formation of LandboNord and is currently a member of the Board of Dir­ ectors of AKV-Langholt - Andelskartoffelmelsfabrikken Vendsyssel. He is primarily known by the general public as the person who provided the land and buildings for Realdania’s building of the farm of the future.

Moreover, Niels Aage Arve, Hjortshøj, was elected member of Danish Crown’s Pork Producer Committee, while Karl Eric Pedersen, Grenaa, was elected new member of the Information and Competency Committee. |

Palle Joest Andersen has just been elected to the Board of Representatives for the first time. He has formerly been

ELECTION OF EXTERNAL MEMBERS OF THE BOARD OF DIRECTORS 26.11.09 The Board of Representatives at its ordinary meeting elected two new external members of the Board of Directors who had been nominated by the Board of Directors. The first new member is Jeff Olsen Gravenhorst, COO of ISS since 2008.

In addition to his seven years with ISS, his professional career has included positions with ALTO INTERNATIONAL, Wittenborg and Arthur Andersen. Jeff Olsen Gravenhorst holds an MSc in Business Eco-

nomics and Auditing from Copenhagen Business School.

The other new member is Søren Bach, CEO of BTX Group, which consists of a large number of companies within the clothing industry.

He is a former CEO of Elbodan and has held senior positions with Dansk Supermarked, Scanform Kontorsystemer, House of Denmark and Domo Boligvarehus. Søren Bach possesses experience from his time on the boards of Peter Justesen Company and Aktielselska-

bet Carl Christensen Aarhus.

Søren Bach holds a number of degrees, including Graduate Diplomas in Business Administration in International Business and in Organisation and Management.

The two new external members are taking up their positions as members of Danish Crown’s Board of Directors as of today. |

Søren Bach CEO in BTX Group Graduate Diplomas in Business Administration in International Business and in Organisation and Management.

Jeff Olsen Gravenhorst COO in ISS MSc in Business Economics and Auditing from Copenhagen Business School.

A COOPERATIVE WITH VALUES

| DEBATE | 19

DC SETTLEMENT SYSTEM MAKING QUITE AN IMPACT In October, Danish Crown launched its new DC Settlement System.

15.04.10 The DC Settlement System offers a number of services to individual members. The three main elements are DC Logistics, DC Contract and DC Market. The three elements increase flexibility, introduce wider weight limits and a new price matrix, the purpose being to increase earnings for individual farmers through a change in behaviour.

Major gains

The benefits of joining the DC Settlement System depend on a number of factors and the choices made by individual producers. There is also the effect of a producer changing his or her behaviour, which is not easily quantifiable.

- We can see that earnings per pig vary quite a lot. There is a difference of DKK 0.70 per kg between those who get the weight and the meat percent-

age just right and those who are less lucky, said Vagner Bøge, Deputy Chief Executive of DC Member Service in connection with the launch of the DC Settlement System.

DC Settlement System producing desired results

Six months after the launch, virtually all members had availed themselves of one or more of the elements in the DC Settlement System. Depending on the type and size of production, members have gone for different options, and that is just how it should be, explained Vagner Bøge, Deputy Chief Executive of DC Member Service, when summing up the status after six months with the new system.

- We can see that the versatile choice offered by the DC Settlement System is working as intended. Members use the solutions which suit their particular operations. And we are getting more and more posi-

tive feedback, said Vagner Bøge in April.

- We hear from more and more members that the DC Settlement System is easier to use in their planning than expected, and that perhaps their initial resistance to the changes was greater than warranted.

Transport costs fall in step with increases in efficiency, and the savings realised by Danish Crown are used to raise prices. |

Efficiency boosts prices

DC Logistics has been met with particular interest by members. But DC Market and the possibility of sectional deliveries under DC Contract – potentially combined with gradual sign-up – have also attracted several new members.

In April, statistics showed that the average load size was up from 188 to 197, that the number of pigs per collection was up by more than 20pc, and that the number of underweight pigs per load was down 30pc in weeks 49-51 relative to last year.

The new system offers a number of choices to members.

LINEAR WEIGHT SETTLEMENT – A NEW WAY OF SETTLING WEIGHT The Beef Division’s new settlement system comes into force on Monday 4 January.

22.12.09 The Beef Division’s new settlement system is being rolled out on 4 January. The system will apply to young bulls, heifers under 14 months, cows and

underweight heifers and bullocks. What this means is that very precise settlements will be offered for particular weights in particular classes.

The figure below shows a model for the linear weightbased settlements for older cows. The linearity will apply to weights from 180 kg to 360 kg. Under 180 kg, the price will

be the same as for 180 kg. This also applies to cows exceeding 360 kg in weight.

In the example, the price at 180 kg is DKK 9.30 per kg, and at 240 kg the price is DKK 10.50 per kg. Anywhere in between these two precise figures, the prices for weights of, for example, 220 kg and 221 kg can be found to be DKK 10.10

and DKK 10.12, respectively.

In other words, prices will no longer be fixed for particular weight ranges, for example for weights of 201-220 kg or weights of 221-240 kg.

The principles underlying settlements for young cows and better-class cows will be the same, only the prices will be higher.

Young bulls, class 4, and young bulls of beef breeds, class 14, follow different curves, as young bulls of beef breeds must be heavier at the time of slaughter than young bulls of dairy breeds. The linear weight settlement system takes account of this in that in the 260-340 kg range, the price is the same for class 7. After 340 kg and up to 400 kg, the price

curve declines at different rates. For E class, the fall will be less than for U class and R class.

Young bulls from class 6 and downwards will increase in price up to a live weight of 260 kg. This is illustrated in the figure below. |

Older cattle - linearOlder weight-based cattle - linear settlement weight-based settlement Young bulls - linearYoung weight-based bulls - linear settlement weight-based settlement Form 4 Form 4 DKK DKK Form 4 Form 14 Form 4 Form 14 DKK DKK 20.00 20.00 25.00 25.00 Example of linear weight-based Example settlement of linearfor weight-based older cow, settlement for older cow, 19.00 19.00 24.00 form 4 one week after increase formof 4 one DKKweek 0.50-1.00 after increase relative of DKK 0.50-1.00 relative 24.00 18.00 18.00 23.00 23.00 to the previous week to the previous week 17.00 17.00 22.00 22.00 16.00 16.00 21.00 21.00 15.00 15.00 14.00 14.00 20.00 20.00 13.00 13.00 19.00 19.00 12.00 12.00 18.00 18.00 11.00 11.00 17.00 17.00 10.00 10.00 16.00 16.00 9.00 9.00 8.00 8.00 15.00 15.00 160280 180300 200320 220340 240360 260380 280400 300 160 180 200 220 240 260 160280 Kg320 340 360 380 400 Kg 160 180 200 220 240 260 180300 200320 220340 240360 260380 280400 300 Kg320 340 360 380 400 Kg

20 | DEBATE | A COOPERATIVE WITH VALUES

FIELD TRIP FOR DC MEMBER SERVICE

New course on optimising pig production in Danish Crown.

04.03.10 Thirty-five members went to Herning yesterday to hear more about ways of optimising the production of finishers based on Danish Crown’s own statistics at Landmandsportalen.dk.

The course in Herning is the first in a new series of courses which have been developed to add to tools available to members and their employees out on the farms. One of the participants was Jens Lindbjerg from Holstebro, who is already a keen user of Landmandsportalen.dk.

- I have used the portal for three or four years, but I had no idea that there are so many ways of digging deeper into the data.

This is something which I will talk to my vet about on Friday, for example the meat percentage, says Jens Lindbjerg, who says that he will sign up for electronic settlements so he receives his settlements with the accompanying statistics as quickly as possible directly in his mailbox.

Huge toolbox

Other topics covered included the DC Settlement System, registering via text message and how to use a scoreboard to become more focused on achieving targets.

ALL ABUZZ IN HERNING 17.06.10 The first district meeting this season was held last night in Herning, and the atmosphere was very positive. The meetings will be held against the backdrop of Danish Crown’s strong interim results and the results achieved as part of DC

Future, a plan which has taken Danish Crown right to the top in terms of the prices offered to members.

And even though the plan will come to an end in the course of the autumn, Danish Crown will remain committed to improving competitive-

ness when its new strategy plan, DC 2015, takes effect.

And so it was a long, positive and open debate about means and ends and Danish Crown’s future development.

This is a debate which was kicked off at the last meeting of the Board of Representatives, and which all members are now invited to join in. |

- We have gradually put together quite an extensive box of tools, which may at first sight seem a bit overwhelming. Therefore, we would like to demonstrate how useful many of the tools actually are.

And we know from experience that most farmers can download helpful information, and in many cases also improve their results by working with the statistics, says Søren Højby, a Member Consultant with DC Member Service.

Also a management tool

Many of the course participants were already active users of Landmandsportalen.dk, but very few of them were using it for managerial purposes. One participant who has done so is Carsten Boye Jensen from Kobberup near Skive.

- On a farm with five employees, control and management is needed at all levels, and I am already very focused on optimising operations. I use Landmandsportalen.dk in particular to benchmark myself against average performance levels and against the top 10pc of DC members. And it is going quite well. But we can obviously do even better. I will therefore be going home to put up a scoreboard for my employees so that we have something to work towards, says Carsten Boye Jensen. |

CLOSE CONTACT WITH OWNERS Danish Crown’s slaughterhouse in Tønder is quite often busy taking calls from farmers who want to ask a question or two.

02.03.10 Every day, farmers call DC’s slaughterhouse in Tønder to enquire about all sorts of things.

Many call about registrations for slaughter or settlements or to talk about the outlook for the future.

- We are like an extended arm of DC Member Service, and our most important job is to be there for the farmers. We handle virtually all enquiries locally, and then we are also the link between the farmers and the hauliers, explains Kurt Brade, Head of Office at Tønder slaughterhouse.

Huge flexibility

Today, the slaughterhouse slaughters almost 2,000 animals a week, but numbers vary from one week to the next, depending on deliveries.

This means that it is possible to accept extra animals at very short notice.

- We aim to ensure that animals are collected on time. In practical terms, this means that they are collected within one week of farmers registering them for slaughter, which must take place by 1 pm on Thursday. However, in emergencies, we can usually also find a solution fairly swiftly, says Kurt Brade.

Guidance

Farmers who are in doubt as to whether an animal is suitable for transport are also increasingly calling the slaughterhouse vets.

- We are always happy to inform farmers about the rules, and also offer pre-transport advice in specific cases. We prefer this to having to tell people off afterwards, says Karin Ravnkilde Jensen, a departmental veterinarian who has been with the slaughterhouse since January 2007. |

A COOPERATIVE WITH VALUES

| DEBATE | 21

WHEN ALL THE ANIMALS ARE CALLED ANGUS Visiting Christian Baun, one of the last active cattle breeders on Fanø.

03.11.09 From Svenskergården just south of the town of Nordby on the island of Fanø, we make our way to the fields where Christian Baun keeps his cattle. All in all, he and his son Michael look after 300 animals.

- I have almost always had Angus. The breed is very well suited for the harsh climate here on Fanø. In the summer, I take them down to the salt meadows, while they spend the winter in the sheltered wooded areas, explains Christian Baun.

Christian Baun is one of the last six or seven active cattle breeders on the island. He was the last pig producer, but had to stop last year as knee problems prevented him from getting into the pigsties out in the fields.

Cattle for Friland

He supplied his pigs to Friland, and this is also where he sends his cattle.

- Each year, I get a visit from the Danish Animal Welfare Society, and their inspectors always look forward to coming over here. They say this is as good as conditions get in all of Denmark, says Christian Baun with a big smile.

Even though the ferry sails several times a day, being a farmer on Fanø is not easy as the cost of both feed and grain is high due to the expensive ferry transport. But this is part of the price you pay for living on the beautiful island where the harshness of the countryside, the wind and the sea have always been part and parcel of life for the islanders. | Christian Baun keeps 300 Angus cattle on the westernmost coast of Denmark.

- I have almost always had Angus. They do best here – both summer and winter, he says.

SEEING A COW FROM BOTH SIDES 07.09.10 Autumn is in the air. The sun is already taking its time getting up. The grass is strewn with pearly dew that wets the toes of our shoes. We are in the town of Houlbjerg, south-west of Randers in central Jutland, which is home to Betina H. Christensen and her husband Henrik. Betina works for DC as a salesperson in the Domestic market department, while Henrik is a DC member.

- I am really proud of working for Danish Crown and also of being a member. It makes me feel particularly satisfied and actually makes a lot of sense.

I am helping to produce the animals while also working to

realise the best price for DC’s owners. It is like looking at the cow from both sides, says Betina.

Small, red Massey Ferguson did it

Henrik and Betina bought Tjærbæk Limousine, as the farm is known today, back in 1997. Initially not because they wanted to produce cattle.

- At the time, Henrik was very enthusiastic about American cars so he wanted to use one of the outbuildings as a workshop. However, it was occupied by a small, red Massey Ferguson. And that did it; he simply had to do something with it, recalls Betina.

So in the end Henrik never got to mess around with old cars on the farm, but he had his limousines – in the shape of four Limousin cattle. Today, the herd counts about 50 cows, two breeding bulls and just over 50 calves.

A happy member

Betina started working for Danish Crown two years before the couple became members. Initially for the holidays and on a temporary contract, subsequently in a permanent job in sales. Today, she mostly sells pork to the domestic market. |

Henrik was originally a member of Vestjyske and became a member of Danish Crown when the two companies merged in 1998.

- Becoming a member and cooperative owner was a natural choice for me back then. And I have been very happy with the arrangement. Today, we supply Limousine Unik, and we’re very satisfied with the prices.

Betina H. Christensen and her husband Henrik are members of Danish Crown, and Betina also works as a salesperson in Danish Crown’s Domestic market department.

22 | DEBATE | A COOPERATIVE WITH VALUES

FUTURE IS ON LANGELAND

FRILAND NEEDS MORE PIGS 11.03.10 Increasing exports mean that Friland desperately needs more free-range pigs. Friland is therefore on the lookout for suppliers who have already established production or who would be interested in establishing free-range production very soon. The supplement paid for free-range pigs has therefore recently been raised to the highest level ever in the company’s eighteen-year history.

- We are interested in suppliers of weaners as well as finishers. However, we have a special need for more finishers for delivery already this year, says Jens Peter Nannerup, head of Friland’s Supplier Contact department; he points out that – unlike organic production – the conversion time for free-range production is not long. |

21.06.10 Gestation pens covering 2,222 m2 have just been completed, and soon a new farrowing facility will be added, and the existing farrowing pens will be turned into a mating department. Moreover, the feed barn

has been converted, and a third US-style silo has been erected.

Last Friday, Ulrik Bremholm held an open day to show off stage one of a major project to expand Rubenlund Agro.

Following the refurbishment, the feed will be mixed centrally in

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the barn, and the wet feed will be pumped to the various departments without any spillage. The sows in the new gestation pens will be equipped with new transponders, and they are divided into four groups, explains Ulrik Bremholm, who produces UK pigs.

Yesterday, the first sows moved into the spanking clean and newly built gestation pens. Ulrik Bremholm already has 650 sows, and this figure will increase to 1,300 once production gets into full swing. |

DANISH CROWN SUPPORTS REDUCED MEDICINE USE IN PRIMARY PRODUCTION The antibiotics list published recently is not aiding the efforts to reduce the use of medicine on pig farms.

22.07.10 Danish Crown is always keen to support initiatives aimed at reducing the use of medicines in Danish pig production.

However, the antibiotics list published recently is not aiding this process. It exposes individual farmers on non­factual grounds. This is the view of Erik Bredholt, Chairman of Danish Crown’s Pork Producer Committee.

- The list of pig producers is not very helpful and only serves to throw suspicion on a large number of farmers who are mentioned by name.

These are farmers who have consulted their vets and to the

best of their beliefs acted in line with the advice they have been given on how to ensure the welfare of their animals. In the form that it has been published, the list takes no account of the progress of the disease or the size of the herds, and it is therefore practically useless, says Erik Bredholt.

He explains that Danish Crown’s slaughterhouses are continuously following up to ensure compliance with the rules on retention times

when pigs are delivered to the slaughterhouses.

- Health management and food safety in production are issues which Danish Crown is already concerned with because many of our exports are conditional upon stringent control of medicine use, says Erik Bredholt. |

A COOPERATIVE WITH VALUES

| DEBATE | 23

DANISH CROWN SLAUGHTERING RECORD NUMBER OF CATTLE During the year, there have been clear signs that the Beef Division has succeeded in its efforts to increase the number of animals for slaughter.

10.08.10 In the first three months of the financial year, 58.6pc of slaughterings in Denmark were handled by one of the group’s three Danish cattle slaughterhouses. This equates to a one percentage point increase.

- At the end of the financial year, we succeeded in reversing the trend and saw a small upturn. We are now witnessing satisfactory growth thanks to a number of factors. For example, we have established good and long-term partnerships with several customers, DC Future is beginning to have an impact in the form of higher prices, and members are increasingly availing themselves of the additional services offered by DC Member Service, said Ejvind Kviesgaard, Head of Department, in January.

Particularly busy August

The supply of cattle continued during the year, and for one week in August, the cattle slaughterhouses were really rushed off their feet.

With extremely high numbers of animals being registered for slaughter, the slaughterhouses were particularly busy. All slaughtering facilities had to operate on the Saturday, and all hands were called in. The target was to slaughter 7,335 cattle.

For the second year running, Lars Børgesen has been honoured with the title of best pig producer in Denmark.

THE PIG WHISPERER FROM TAPDRUP For the second year running, Lars Børgesen has been named pig producer of the year.

26.11.09 - I have never been taught how to look after pigs. I have picked up bits of advice along the way.

But otherwise I am just learning from experience all the time. I analyse everything I do – both when it goes well, and especially when it goes badly, says Lars Børgesen, who has been named best pig producer in Denmark for the second year running.

ally say that if the cleaners are prepared to lick the floor, they have done a good job, explains Lars Børgesen, who changes his footwear several times in the course of the day to minimise the risk of spreading disease.

Pigs must get to know me

- When I enter the building, I immediately feel if anything

is wrong with the pigs, for example diarrhoea. Especially early on, I go round the building several times a day. It is important that the new pigs get to know me. Then they calm down much more quickly. And on the day they arrive, the building is dry and heated, and the feed has been strewn on the solid floor. That way, they soon learn where to shit, says Lars Børgesen with a smile.

The weaners are sorted according to sex on arrival and are kept separate throughout production. While the sows are given feed consisting mainly of wheat, the feed for the hogs contains some barley. All the animals are given a little dried grass meal and oats to aid digestion. The smallest pigs are given extra protein, which is then gradually stepped down as they grow. |

- We are currently seeing a considerable influx of new members, and so we are naturally also receiving many animals for slaughter. At the same time, there is a bit of a backlog to clear after the summer holidays and a small number of animals left over from last week, explained Lorenz Hansen, Managing Dir­ ector of the Beef Division.

Owners backing up Danish Crown

In a normal week, Danish Crown slaughters just over 5,500 cattle in Denmark – and about 6,000 in a really good week. The high figures for this week were therefore a cause for optimism for Lorenz Hansen.

- We have pursued an extremely attractive pricing policy throughout the financial year, offering prices which are among the highest of all. This has benefited our members and has also attracted new members. Today, we are therefore very confident about the future, said Lorenz Hansen.

60.4pc of slaughterings in Denmark

Slaughtering almost 10,000 more cattle during the year as a whole, Danish Crown has increased its share of total slaughterings in Denmark to 60.4pc against 57.6pc in the last financial year. All in all, Danish Crown slaughtered approx. 278,500 cattle in Denmark in 2009/10. |

Lars Børgesen is a qualified farmer and specialises in cattle farming. For almost six years, he worked as a feed manager and later as an inseminator. In 2002, he started producing pigs in Tapdrup outside Viborg in central Jutland. Today, he receives about 3,500 weaners a year from a farm nearby, which is newly refurbished and has a high health status.

- A new batch arrives when the old ones are sent off. I am quite paranoid about cleaning, and even though I use a firm of cleaners, I sometimes go over things myself as well. I usu-

Danish Crown has increased its share of slaughterings in Denmark to 60.4pc against 57.6pc in the last financial year.

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THE GLOBAL WORKPLACE

JOBS

| JOBS | 25

THE GLOBAL WORKPLACE Two thirds of Danish Crown’s employees work outside Denmark. Competition is fierce, and the company must adapt to the challenges.

FEWER INJURIES

37

2008/09 2009/10

8

RØNNE

70 64

78%

SÆBY

9%

18 12

AALBORG

33% 6 6

HADSUND

0%

Efforts to reduce accidents at work are paying off. Since 2006/07, the number of accidents at Danish Crown’s factories has fallen by more than 30pc.

18 17

8 11

HOLSTEBRO OD

6%

70

FAARVANG

HERNING

31%

6 7

SKJERN

The number of falls and cutting accidents is down at the Danish Crown slaughterhouses in Denmark. The number of accidents at work has fallen by as much as 34pc since 2006/07. The cure against accidents at work is called the ‘accidental project’. It started in Ringsted six years ago and has since been rolled out at all DC facilities.

- The project has shown that accidents at work can be prevented. Especially when both the management and the occupational health and safety groups as well as the employees support the initiative, says occupational health and safety coordinator Randi Madsen from Danish Crown’s own insurance company, DC Insurance, who has been instrumental in launching the ‘accidental projects’.

There is still every reason to focus on reducing accidents at the slaughterhouses.

- But our project has shown that it is largely a question of attitude, and this has changed a lot, says Randi Madsen. |

17%

SDR. FELDING HORSENS

100%

The musician René Dif worked at the slaughterhouse in Horsens as part of his nationwide initiative to raise money for families with children affected by cancer.

børn’, a Danish organisation for families with children affected by cancer. The project involved walking from Copenhagen to Skagen at the northern tip of Jutland, doing odd jobs on the way.

02.09.10

During his visit to Horsens, René Dif worked for almost

- I like the fact that you said that you have seen worse, grins René Dif to fore-end master Frank Wolff, before again directing his full attention to the fore-end and the knife in his hands.

- I’d like to work faster, but if I speed up, I’m bound to cut myself, continues René Dif, who visited Danish Crown’s slaughterhouse in Horsens on 2 September.

René Dif, a musician with the Danish band Aqua, came as part of his fund-raising project for ‘Familier med kræftramte

15%

62

5 5

ESBJERG

18%

KOLDING 25

11

56% 11 3

73%

48%

23

SKÆRBÆK 63 53

32

RINGSTED

0%

TØNDER

RENÉ DIF IN HORSENS

88 75

0 1

85 70

January 2010

38%

48

10

FAABORG

57%

BLANS

11%

FIRE SAFETY A PRIORITY March 2010

an hour at the fore-end department and was ‘paid’ DKK 5,000 for his efforts by the DC Horsens staff association. DC decided to chip in so that the guest slaughterhouse worker could walk away with DKK 15,000 for the good cause. All in all, he raised just over DKK 450,000 on his 500 km walk. |

In future, all Danish Crown’s factories will be inspected from A to Z every month as a fireprevention exercise. On 1 March, DC introduced so-called self-inspections which will be carried out locally.

In Sæby, Susanne Stenbro, an environmental assistant, has been given the task of conducting a fire-technical review of the entire facility.

- The factory is divided into 12-13 sections, including the outdoor areas. I do a walk-through of each section, checklist in hand. I inspect the rooms in each department, checking whether the fire sections are OK, that the seals on the

fire equipment are unbroken, whether materials have been left in places where they shouldn’t be, and whether everything is tidy, explains Susanne Stenbro.

Then follows all the administrative work as my observations have to be entered into the computer, and action plans need to be devised and followed up on.

In addition to the walk-throughs, other fireprevention measures have also been introduced. For example, all electrical devices which employees have brought to work from home must be removed. Many other steps have also been taken. |

THE GLOBAL WORKPLACE

DANISH CROWN KEEN TO COMBAT WORNOUTNESS Three-year health project focuses on both work and health.

17.08.10 On 1 October, Danish Crown will be launching a groundbreaking project which will provide both Danish Crown and the entire slaughterhouse industry with valuable knowledge on how to prevent workers from becoming physically worn-out.

The health project will centre

both on the workplace and on the state of health of the individual. In addition to revealing how employees are impacted by work routines, the state of health of the individual employees will also be an element in that diet and exercise will be included in the pilot project, which comprises 1,160 production employees at the pig and sow slaughterhouse in Sæby, the cattle slaughterhouse in

Aalborg and the processing facility Tulip Food Company in Aalborg.

The objective is to help employees lead healthier and better lives, thereby minimising the degree to which they end up being physically worn-out and reducing absence due to illness to 5pc. At the same time, the project pursues the aim

that employees should experience 30pc less musculoskeletal pain and for them to feel that their state of health has improved by 30pc in the course of the three-year project.

The health project is so groundbreaking that the Prevention Fund has granted DKK 12.4 million to the initiative.

| JOBS | 27

BUTCHER FOR EVER His body already has a fair number of tattoos, and now a new one has been added. Right across his chest – Butcher For Ever.

09.09.10

The efforts to cut the number of cases of employees becoming worn-out follow in the wake of Danish Crown’s success at cutting the number of accidents at work. Targeted efforts over several years have markedly reduced the number of accidents at work, in the group as a whole by 30pc. |

- I love my job, so why not show it, is Michael Fecht­ ner’s upfront explanation of the tattoo now adorning his chest.

The intricate lettering reads ‘Butcher For Ever’, followed underneath by his employee number, 3589.

Michael Fechtner can always be found at the organ remover in Blans. He does the pre-cutting, and checks that the robot does its work properly when removing the intestines. Michael Fechtner has previously worked at the deboning and cutting departments and on the loin line. He can do any job at a slaughterhouse, and he loves his work.

- I came to Blans four years ago, and it’s the best workplace I have ever worked at. The atmosphere is great, my colleagues and the master butcher are friendly, and the pay is much better than in Germany, says Michael Fechtner, who has been in the slaughterhouse business for 28 years.

Radio Horsens listeners agreed with Michael Kristensen: He has the coolest job.

MICHAEL HAS THE COOLEST JOB

- This is my dream job.

I have always loved being a butcher, and today I couldn’t imagine doing anything else, says Michael Fechtner. |

Radio Horsens listeners named Michael Kristiansen’s job as a sticker in Horsens as the coolest of all.

28.05.10 - My workplace is just the best, allowing me to perform 9,800 killings a day, was Michael Kristiansen’s text message to Radio Horsens as the radio station launched its competition to name the coolest job of all.

Listeners agreed, and so Michael won.

- I was almost speechless, I was so surprised when the presenters from Radio Horsens suddenly turned up. But I am, of course, extremely happy and proud, says Michael, who initially celebrated with his family. Next, it’s cakes for his colleagues.

- What matters most is your colleagues. So of course I will be celebrating with them, says Michael. |

- This is my dream job. I love my work. The best way of showing it was by having ‘Butcher For Ever’ tattooed across my chest!

Michael Fechtner, Blans, slaughterhouse worker for the past 28 years.

28 | JOBS | THE GLOBAL WORKPLACE HORSENS RAISES DKK 83,000 FOR CHARITY

- What I am looking forward to most is seeing the princesses, says Cathrine, shyly turning round and round in her pink shoes; tomorrow she is off to Disneyland in Paris together with her mother, father and younger sister.

fore-end department together with workplace union representative Lars Mose, as Radio Horsens was at the time spearheading a large-scale fund-raising campaign for the organisation. It was actually such an excellent idea that other departments decided to chip in.

04.03.10 A donation of DKK 0.25 for each front-end processed during one week. This was one of the initiatives launched by the employees in Horsens to

raise money for families with children affected by cancer back in March. A total of DKK 83,000 was raised.

The fundraising idea was conceived by the day shift of the

Consequently, the amount raised totalled an impressive DKK 83,000, which representatives of the slaughterhouse could present on behalf of Radio Horsens listeners.

SLAUGHTERHOUSE WORKERS DONATE DKK 450,000

- It has simply surpassed everyone’s expectations, announced a delighted Frank Wolff, a fore-end master with Danish Crown. |

Thirty-four sick children and 36 disabled people had their wishes fulfilled thanks to DKK 450,000 from Slagteri­ arbejdernes Hjælpefond at the

08.10.09

closed-down pig slaughterhouse in Holstebro – a foundation originally set up to assist sick slaughterhouse workers.

Six-year-old Cathrine Sørensen is one of the gravely ill children.

- The money couldn’t have been spent in a better way, says Jørgen Christensen, job bank manager in Holstebro, while looking at young Cathrine, who is holding a Mickey Mouse teddy in her hand.

The foundation also donated DKK 30,000 to the multihouse for mentally and physically disabled adults in Holstebro.

The 36 users of the multihouse had a burning desire for a covered place for a bonfire, and that is what they got. |

HUGE BIRTHDAY PARTY IN HORSENS A fifth birthday calls for proper celebrations, and that is just what was laid on in Horsens on 21 May. 21.05.10 A hotdog stand in the entrance hall, balloons suspended from the ceiling and delicious cake for all. These were just some of the things organised in celebration of the fifth birthday of Danish Crown’s slaughterhouse in Horsens.

To mark the occasion, Danish Crown’s sausage stand had been rolled into the large slaughterhouse, and after speeches by CEO Kjeld Jo-

hannesen and Factory Manager Per Laursen, all the guests were served green sausages, soft drinks and birthday cake.

The employees, of course, joined in the celebrations too.

The canteens were decorated with flags, and birthday cake and green sausages were served here too.

Together with Frida the Happy Pig, Kjeld Johannesen visited went round the canteens to congratulate the employees. |

Slaughterhouse in Horsens In the first five years, 18,667,241 pigs have been slaughtered.

The slaughterhouse has 1,371 employees.

121,763 people have visited the slaughterhouse.

The slaughterhouse covers 82,116 square metres.

The slaughterhouse is situated on a 49-hectare plot.

The slaughterhouse has eleven chimney stacks.

THE GLOBAL WORKPLACE

EMPLOYEES BEHIND DC October 2009 The DC Tjek survey in May showed that Danish Crown employees are both highly motivated and highly committed.

The scores for both motivation and commitment were up relative to the first survey conducted two years ago, and the increases even surpass the targets defined back then.

- I am simply delighted that the employees are so dedicat-

ed to our workplace at a time when we are under so much pressure. It bodes well for the future, says Kjeld Johannesen, CEO. - The results show that Danish Crown is a good workplace with good employees who take a keen interest in how the company is doing. This is a very valuable starting point from which to work, emphasises Kjeld Johannesen.

More good results

In both the parent company and in the group as a whole, levels of motivation and commitment are higher than for comparable large enterprises.

The target for DC Tjek 2009 was for motivation to increase by two points, but in fact it is up by an impressive three points. The target was a onepoint increase in commitment, but this is now two points higher than the result for 2007.

Danish Crown has also been highly successful in increasing the proportion of accomplished managers. In 2007, 19pc of managers were described as accomplished, i.e. both professionally competent and good leaders. This year, the figure is 26pc. The target was 25pc.

Finally, the response rate was sky-high. 91pc took part in the survey, against 66pc last time. |

Danish Crown Pork Division Beef Division

Score

Danish labour market (> 500 employees)

100

SUCCESSFUL JOB BANK CLOSING DOWN Finding new jobs for those affected by the closingdown of Tulip in Sdr. Borup has gone better than expected.

03.09.10 One hundred and fifty-six employees had to say good-bye to their jobs when Tulip’s factory in Sdr. Borup closed down in December 2009. Since then, John Møller, union representative and manager of the job bank, has helped find new jobs for his colleagues. The job bank is now closing down, and it is time to look at what nine months of hard work have achieved.

- Of my former colleagues, 100 have found a new job, thirteen have taken early retirement, while 43 are either actively looking for work or doing courses, says John Møller.

Job banks are important

He is satisfied with the results and is convinced that social plans and job banks are important tools when it comes to helping those affected by job cuts.

80 60

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72 [+3]

72 [+4]

72 [+6]

71 [+3]

79 [+2]

79 [+2]

78 [+1]

76 [+4]

- Of course, it has been hard, but Danish Crown’s social plan and job bank are things which we can certainly be proud of.

The system does make a difference, and when you think that the factory closed down in the middle of the financial crisis, it has gone much better than we feared, says John Møller.

Hard-working employees

40

He hopes that many of the 43 former employees who are not yet clear about what they are going to do will soon find new jobs.

20

- Those who have taken on my former colleagues are all very impressed with the employees from Sdr. Borup. They work really hard, and several of them have in fact gone on to work for the same new employer, says John Møller.

0

This also applies within DC. Thus, 36 of the 100 who have found new jobs are back working for the Danish Crown group. |

Motivation

Commitment

MONEY SHOWERS DOWN IN HOLSTEBRO Four organisations had a share of the DKK 285,000 left over when the canteen at the slaughterhouse in Holstebro closed.

19.01.10 DKK 285,000 – that was what was left from the canteen at DC’s closed-down pig slaughterhouse in Holstebro. Of this amount, DKK 205,000 was donated to the nationwide organisation La Vida for children with life-threatening diseases.

However, three local organisations in Holstebro also had a share of the money from Slagteriarbejdernes Hjælpefond – the shelter run by Dan Church Social (Kirkens Korshær), the

rehabilitation institution Ung Verden, from where seven residents are going to Copenhagen, and the childminders at Ejerlauget Ellebæk Område 1, who would very much like a slide.

- I feel a bit like Father Christmas. It is always a pleasure being able to donate money for worthy causes, says Jørgen Christensen, who manages the job bank.

The last time Slagteri­ arbejdernes Hjælpefond from

the slaughterhouse in Holstebro distributed money for charit­ able purposes was in October 2009. Back then, DKK 450,000 was donated to a number of children with lifethreatening diseases and to the multihouse for mentally and physically disabled grown-ups in Holstebro.

Moreover, Dan Church Social in Holstebro has been given DKK 40,000 to realise their ‘We are humans too’ project. The shelter run by Dan Church Social is used daily by 107 people. |

30 | JOBS | THE GLOBAL WORKPLACE MANAGERS LEARN ABOUT ANIMAL WELFARE March 2010 Next week 20 production managers will be going back to school for two days to learn more about animal welfare. They will be attending a course developed by Danish Crown with the assistance of experts based on the philosophy that the wellbeing of the animals must always be a key concern for a food company such as DC. Presentations will be given by employees from DC’s export and domestic sales departments, while a member of DC’s Board of Directors will represent the producers.

Moreover, the course participants will be looking into customer requirements and expectations with respect to good animal welfare. The course will also address the behaviour and hand­ ling of finishers and look at the whole process from unloading, through stunning to slaughter. An important topic is the applicable rules in the form of both Danish and EU legislation.

The DC course on animal welfare is unique within the slaughterhouse industry as it goes far beyond the statutory requirements. In fact, the big UK supermarket chain Tesco has approved the course as being on a par with the so-called Bristol course, which is an advanced course on animal welfare, and one which Tesco normally insists its suppliers have completed. |

NEIGHBOURHOOD CONTACT GROUP A SUCCESS IN RØNNE 02.03.10 On the initiative of Danish Crown in Rønne on the island of Bornholm, a neighbourhood contact group has been established to improve the mutual understanding and communication between DC and its neighbours. It has been a great success.

The neighbourhood contact group came into being about a year ago when the slaughterhouse invited its neighbours over to talk about the installation of an ammonia tank.

At the meeting, four people immediately volunteered as members of the contact group, and several more promised to sleep on it. One of the neighbours is Randi Andersen, who is pleased that Danish Crown has been listening to the complaints from neighbours.

- We are very happy that we now have a person we can call.

The issues which we have highlighted in the form of unpleasant odours and noise problems have been addressed, says Randi Andersen to the Danish Broadcasting Corporation. |

DC EMPLOYEES HONOURED BY DANISH CROWN PRINCE

One deaf and one hearing colleague from Danish Crown in Horsens have been named ‘My Best Colleague’ by the Danish Deaf Association.

09.09.10 On 8 September, the normal slaughterhouse workwear of Karsten Urup, who is deaf, and union representative Lars Mose had been swapped for a shirt and jacket when they were presented with the Danish Deaf Association’s ‘My Best Colleague’ labour market prize

by HRH The Crown Prince at Amalienborg in Copenhagen.

- The panel has decided that the award should go to Lars and Karsten because they have together shown that deaf and hearing colleagues can and must work together and communicate with each other on an equal footing. They have not been thrown by the challenge of having to communicate across Danish spoken language and Danish sign language, but have seized this opportunity to embark on an exciting learning process, said Asger Bergmann, Chairman of the Danish Deaf Association (DDL) after the ceremony.

Overjoyed

Both Karsten Urup and Lars Mose, who have, among other things, organised sign language courses for their colleagues, were very proud to be receiving the prize.

Lars Mose and Karsten Urup (far right) with the certificate naming them as winners of the ‘My Best Colleague’ award. The award has been instituted by the Danish Deaf Association, which was represented by its Chairman, Asger Bergmann (second from left) and employees. HRH The Crown Prince presented the award.

Factory Manager Per Laursen (centre back) was also present. Photo: Steen Brogaard.

- We were completely overjoyed when we were told that we had won, recalls Lars Mose.

- It has been a great experience, but it is not only our achievement. I would like to thank all our colleagues, both deaf and hearing, who have made it possible, says Karsten Urup via a sign language interpreter.

- It is also important to mention Danish Crown as being a workplace which does not

FINANCE PEOPLE IN THE KITCHEN

turn away deaf people. The com­ pany is prepared to look beyond any problems in employing deaf people, and that is positive, continues Lars Mose.

Proud of DC

Factory Manager Per Laursen, who attended the ceremony, is also proud to be working for a company which is recognised in this way.

- It reflects our way of going about things and finding so-

25.05.10 Employees from DC’s finance departments worldwide have gathered for a two-day financial conference in Randers to prepare for their work on the annual report; they were met

by CFO Preben Sunke, who presented them with an entirely new task. They had to cook their own supper.

Donning Danish Crown aprons and matching T-shirts, the finance people eagerly set to work in Danish Crown’s mobile kitchen which had been wheeled into the machine shed at the farm of Erik Bredholt, Deputy Chairman of Danish Crown’s Board of Directors.

It was a lively scene of cutting, chopping, rinsing and chatting when employees from Danish Crown’s finance departments all over the world met in the kitchen to cook their own supper.

lutions. It is not a question of time and money and resources, it is a question of attitude. We have five employees who are deaf, and in each case we find a solution so that we can all communicate with each other, much in the same way that we do with our Polish employees, says Per Laursen. |

The idea behind the workshop was for the finance people to

meet over the stove and to get a chance of getting to know each other better with a view to forging relations and promoting collaboration between the departments and across borders.

For Laurent Egret, it was his first visit to a pig farm despite having worked for the Danish Crown group for fifteen years.

- For those of us who spend our working days behind a desk, having a hands-on experience of Danish Crown’s core values is very important. After all, it’s all about food, he says. |

THE GLOBAL WORKPLACE

FAT, FAT BALLS AND FISH AND CHIPS 24.11.09 Every day at 4 pm, two employees sign in at the fat-rendering plant in Holstebro. The day’s production is waiting in huge vats. Up to 40 tonnes per day.

Fat and tallow from virtually all Danish cattle must be rendered.

Production is fairly constant over the year. Between 180 and 200 tonnes of raw fat a week.

Some of the fat from the fat-rendering plant at Danish Crown in Holstebro ends up in Danish gardens as fat balls for the birds. In fact, about 1,000,000 balls – a day.

- This is the only fat-rendering plant in Denmark. So in addition to rendering the fat from our own slaughterhouses, we also buy raw materials from vir-

| JOBS | 31

- I like being down here all by myself, says Bloody Henning. His working day starts with an inspection at 4 am every morning and finishes at about lunchtime.

tually all private cattle slaughterhouses in Denmark, explains Jacob Rahbek Peder­sen, Export Manager in Danish Crown’s Beef Division.

The rendered fat is sold to three main customer segments.

Some is shipped to Scotland, where it is primarily used to deep-fry fish and chips. Some is sold to the Netherlands, where it is added to milk substitute for calves. And some ends up in Danish gardens. In small green fat balls for birds – in Denmark about 1,000,000 such balls are produced a day. |

SAFETY FIRST March 2010

SEPARATING BLOOD Jobs in Danish Crown are many and varied.

March 2010

Safety is high on the agenda in Danish Crown, and a safe workplace starts with the individual employee. DC Insurance, Danish Crown’s own insurance company, has therefore set up the email address sikkeride@dcinsurance.dk to which employees can send suggestions on how to improve safety at the various departments around Denmark.

Some look for missing larvae, others show visitors round the slaughterhouses and then there are those who segregate blood, such as Henning Frederiksen. Not all jobs at DC’s slaughterhouses have to do with slaughtering.

Henning Frederiksen is standing in the basement underneath the slaughter line at the slaughterhouse in Horsens. Transparent white pipes pass through the ceiling and change colour as a deep-red liquid flows through them and discharges the contents into a large metal-coloured container.

- It reminds me a bit of my job as a dairy worker. Only it stinks more, says 58-year-old Henning Frederiksen – who is better known as Bloody Henning.

For example, a couple of employees from one of the packaging departments in Esbjerg have invented a curved knife to prevent cutting and stabbing injuries. They did so in collaboration with colleagues from other branches of the DC family. |

Red and white

In the basement underneath the sticking line, he makes sure that the three and a half litres of blood sucked out of each pig do not coagulate. By adding citrate, the blood remains fluid.

In the gigantic containers, the white blood cells are separated from the red. The red blood cells are sold as mink feed because the fat, red mass makes the furs shiny. In the words of Bloody Henning, the white blood cells are like the slaughterhouse’s gold; they are used in minced products. By the end of the day, three lorries will have collected a total of 50 tonnes of blood. |

Thanks to a particularly suitable knife, cutting the Strapex at the packaging facility in Esbjerg is now perfectly safe.

THE SUPER MINCERS FROM SKJERN 09.02.10 - We like records, and we are well under way to setting some new ones, says Jørn Madsen, Factory Manager at DC in Skjern.

The day’s production is 45 tonnes of mince, or the equivalent of 90,000 trays. On some days, production even hits the 115,000 mark. This means that Skjern is now producing more than 300 tonnes of minced beef a week.

The mincers are extremely busy at the Danish Crown facility in Skjern in western Jutland.

Jørn Madsen is convinced that one of the reasons for the strong demand is that custom-

ers can rely on the high quality, and on the contents living up to the information on the product labels.

- Our products are packaged in a modified atmosphere with a guaranteed shelf-life of at least seven days from the day of packaging, he says.

Strong focus on quality

In Skjern, there is a lot of focus on quality, and production routines are regularly adjusted to live up to consumer requirements, for example by increasing the fineness of the mince so that it looks better in the cool counter.

The facility in Skjern is part of Danish Crown’s Beef Div­ ision. In addition to producing minced meat, the facility also debones, cuts and packs meat for the Danish market.

A total of 130 people work in production, including approx.

40 in the retail section. The strong demand has also meant that the factory will be starting up a new night shift in week 8.

Since adding a third minced meat line in early summer 2009, the department has gradually been able to increase productivity. |

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CULTURE

BRINGING DC QUALITY HOME It is no longer a secret ... for the very

best meat, go to Danish Crown. Those are the words of the best butchers and chefs in Denmark.

The photo shows cattle producer Søren Vester (left), CEO Karsten Deibjerg Kristensen (centre) and the French master chef Francis Cardenau (right) with Denmark’s first Wagyu calf.

DENMARK’S MOST EXCLUSIVE BULLOCK SOLD FOR DKK 74,350 The most expensive bullock produced in Denmark so far was sold on Wednesday to the Umami restaurant in Copenhagen for DKK 74,350.

29.04.10 Danish Crown’s subsidiary Friland sold Denmark’s first specimen of the exclusive Wagyu race for DKK 74,350 – the highest price ever paid for a Danish animal for slaughter.

It was an almost two-year-old bullock with a carcass weight of 340 kg. This corresponds to a price per kg of beef fillet of approx. DKK 800.

– We have spent four years establishing a pure-bred Wagyu herd. We feel that we have got off to a good start with this bullock. This is an impressive result for our first attempt at breeding Wagyu, says CEO Karsten Deibjerg Kristensen from Friland.

The cattle came to Denmark as embryos which Friland imported in 2008. Since then, they have been reared by Søren Vester from Finderup near Viborg.

“As good as it gets”

So far, the Wagyu meat, which is also known as Kobe meat, has been available at a few restaurants which have imported the very expensive, but extremely tasty beef themselves. The Wagyu cattle stems from Japan, and its unique fat marbling is what produces its highly valued flavour.

– I am extremely pleased that it is now possible to obtain Wagyu produced in Denmark. This will hopefully help

to heighten the quality consciousness of consumers when buying meat, says Francis Cardenau, who sampled the beef and described it as the best, and a product which he is greatly looking forward to serving in his restaurant.

DKK 75,000 no deterrent

To fix the price of the first Wagyu meat produced in Denmark, Friland and the Umami restaurant had to look to a Japanese classification model which focuses in particular on the fat marbling. The special classification goes from 1 to the top mark of 12, which could have triggered a sales price of more than DKK 300,000. The first attempt at Wagyu production achieved a marbling qual-

ity of 5, which the buyer Francis Cardenau regards as being very good.

The restaurateur is not deterred by the price.

– It is in line with what I would expect for this class of meat, which I have previously had to import from around the world, says Francis Cardenau, who is hoping that Friland will succeed in establishing a reliable production of Wagyu meat.

After the slaughter of the first Wagyu, Friland has another ten Wagyu cattle left in Denmark. The next Wagyu is expected to be slaughtered in August-September. |

BRINGING DC QUALITY HOME

TV CHEFS BARBECUING LOTS OF MEAT

07.06.10 Many different cuts, and perhaps some rarely seen variants, sizzled on four barbecues when the TV chefs Adam and James Price came along for a cookout in the outdoor kitchen on stage at the Weber Camp held in Give last weekend.

Danish Crown sponsored the 400 kg of beef and pork used at the camp.

| CULTURE | 33 GRILL’IT IS A REAL BESTSELLER 29.07.10 The new barbecue series, Grill’it, from Danish Crown has become a real best­-seller for the Domestic market department. The series – with its unique flame layout – was launched in week 16 and has already surpassed all previous records.

- Sales are wildly in excess of expectations. We were slightly worried in June as people were not exactly flocking around their barbecues due to the weather.

However, we have subsequently had plenty of hot summer days, and that has really boosted sales, explains Torben Pedersen, Sales Manager with Danish Crown.

- Yeah, we’re not exactly vegetarian, and never will be, interposed his brother, James.

The Price brothers also barbecued veal sweetmeats, lamb kidneys and Moroccan-style chicken in a pyramid-shaped clay pot on the barbecue to demonstrate slightly more unconventional barbecue dishes; and for pudding, flambeed bananas with coconut ice cream. |

The barbecue season runs until week 35, but several of the products will still be available in the shops for some time after that. |

- We use quite a bit of meat, in fact lots of meat, explained Adam Price.

Danish consumers have warmly welcomed Danish Crown’s new barbecue series, Grill’it.

- Yeah, we’re not exactly vegetarian, and never will be, says James Price.

DC QUALITY AT DANISH BARBECUE COOKING CHAMPIONSHIPS 31.08.10 Meat from Danish Crown was being used on the barbecues for the Danish Barbecue Cooking Championships, which were held last Saturday at Tivoli in Copenhagen. The Beef Division had made sure that the eighteen competing teams had 40 pork tenderloins, 60 baby backribs and 60 osso bucos with which to work.

Entrants included ordinary barbecue enthusiasts as well as the National Danish BBQ Team, which was also sponsored by Danish Crown at the World Championship Barbecue Cooking Contest in the USA in May. The winners, who can now call themselves Danish Barbecue Cooking Champions, were three cheerful chaps from BBQ Team Fyn. |

Three happy champions from BBQ Team Fyn.

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GOOD MEAT AND GOOD MUSIC 50,000 BURGERS FOR ROSKILDE FESTIVAL 29.06.10

DANISH CROWN BEHIND MASTER CHEF

DC’s department in Sdr. Felding is currently working at full stretch to complete an order for up to 50,000 hamburgers for delivery to Roskilde Festival. 10,000 burgers will be delivered frozen. The rest – approx. 5,000 a day – will be delivered fresh.

Rasmus Kofoed in action at Bocuse d’Or 2007, where he won silver.

- It is an exciting order which we are pleased to be handling.

The festival has already reported back that it is an absolutely excellent burger, which is obviously very nice to hear, says Sales Manager Erling Jensen from the Beef Division. |

BONO, BEEF AND BROAD SMILES

Crown also helps him procure the quality raw materials which he needs for his preparations.

17.08.10 An excited audience of 35,000 U2 fans had a world-class concert experience when the Irish band U2 came on stage for the first of two totally sold-out concerts in Horsens on Sunday evening. For the event, Danish Crown and Tulip were in charge of the food for a number of Danish celebrities. The National Danish BBQ Team did the cooking for the 200 so-called ‘ultra VIPs’, and Danish Crown’s Beef Division supplied the meat, including Danish veal fillet and beef tenderloin.

And DC was also on hand for all the other concert-goers as Denmark’s biggest barbecue from Gøl was there. |

BOXING AND BEEF IN HERNING 26.04.10 It was a formidable fight on Saturday evening in Herning, when Mikkel Kessler reclaimed his WBC championship title against Carl Froch of Great Britain. But the high-quality performance was not confined to the boxing ring; Danish Crown’s catering department supplied the tenderest meat for the evening’s event where guests consumed no less than 400 kg of beef tenderloin. |

FESTIVAL IN A TIN 30.06.10 Roskilde Festival is synonymous with Faaborg liver pâté. This year the popular tinned liver pâté has its own camp. Here, a group of experienced festival-goers have decided that their camp should be an ode to the most important festival food, the famous tinned Faaborg liver pâté.

- Faaborg liver pâté is Roskilde Festival in a tin, says Rasmus Jacobsen, one of the Faaborg liver pâté campers.

- Whenever we go to a festival, Faaborg liver pâté is a musttake, so we contacted Tulip and asked whether they would sponsor our camp, and they said yes, recalls Rasmus Jacobsen. |

10.06.10 The Danish master chef Rasmus Kofoed can now also call himself the best chef in Europe.

On Tuesday, he won the pres-

tigious Bocuse d’Or Europe, also known as the European Cuisine Contest.

in the Bocuse d’Or contests, and was therefore there when Rasmus Kofoed won the title.

Danish Crown is a regular sponsor of the Danish entrant

In addition to sponsoring Rasmus Kofoed’s entry, Danish

DUROC FOR STAR CHEF CONTEST 15.10.09 Duroc pork from Danish Crown is on the menu when, next Sunday, two of the best chefs in Denmark will be competing for the right to represent Denmark at the unofficial World Cuisine Contest, Bocuse d’Or 2010.

Rasmus Kofoed, who has competed twice before in the Bocuse d’Or contest, will be meeting chef Wassim Hallal from Restaurant Frederikshøj in Aarhus at the stoves.

The Bocuse d’Or selection will take place in Odense on Sunday, 18 October, and for the past few weeks the two contestants have been intensifying their training.

- The meat was delivered last week and I have spent the past couple of days familiarising myself with it. But it is absolutely fantastic. It is the first time in a long while that I have worked with meat which is so tender, tasty and succulent and with such a completely unique structure, says Wassim Hallal. |

Duroc is an exclusive breed of pig which provides meat of an outstandingly delicious eating quality. The pigs are slaughtered when they weigh 40-50 kg, and this makes the meat more delicate than meat from traditional pigs.

NOMA VOTED ‘THE CHEFS’ CHEF’ 03.09.10

The fund for the promotion of Danish gastronomy was set up on the initiative of a number of leading chefs and Danish Crown.

Earlier in the year, Restaurant noma was lauded as the world’s best restaurant, and last Thursday colleagues in the restaurant business added to the glory. This became clear when the gourmet restaurant in Copenhagen was named ‘The Chefs’ Chef 2010’ at a fund-raising event at Hotel Koldingfjord.

Festival scene and liver pâté.

- One of the key ingredients for Bocuse d’Or Europe was Swiss veal. We therefore helped Rasmus Kofoed get hold of the same cuts of Danish veal as the ones he would be using for the contest. In this way, we are also involved in the preparations for the Bocuse d’Or contest, explains Sales Manager Henrik Rosbjerg from Danish Crown Foodservice. |

- You have to acknowledge that the fantastic duo Claus Meyer

and Rene Redzepi have come a long way. They have really put Denmark on the world map,

and this will be of tremendous significance to further developing Danish gastronomy.

The world’s best restaurant, it does not get any better, was the jury’s motivation.

Behind the award is the fund for the promotion of Danish gastronomy, which was set up on the initiative of a number of leading chefs and Danish Crown. The purpose of the fund is to support promising Danish chefs by funding courses and studies with the aim of further developing gastronomy in Denmark. |

Hvis du vil fejre en ægte dansk jul, skal flæskestegen, frikadellerne, mørbraden og alle de andre juleklassikere naturligvis være 100% Dansk.

Vind 24 halve grise i december på www.100pctdansk.dk

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DANISH BEEF CATTLE IN THE SHOPS THIS WEEK 24.08.10 As from this coming Friday, consumers will be able to buy Danish Crown’s new concept, Danish Beef Cattle, in selected SuperBest supermarkets and from a number of independent butchers in Denmark.

Danish Beef Cattle is a relaunch of the Friland Beef Cattle concept following a few minor adjustments. The concept means that suppliers can supply as many animals as

they want as long as they comply with the weight and form class requirements.

At the same time, shops will be able to order individual cuts whereas before they had to take complete sets, whole or half carcasses.

- We have made the concept more competitive and flexible for both producers and customers. We hope that this will help boost sales, says Kaj Verner Nielsen.

KVICKLY­ AND DANISH CROWN SELLING MORE BORNHOLMER PORK

Danish Beef Cattle must be 1224 months old, at least class 8 and weigh 260-340 kg. All species of beef cattle can be part of the concept.

01.10.09 Only 18 months after Bornholmer pork was introduced, it is proving so popular that Kvickly, in collaboration with Danish Crown, is boosting production of this favourite ‘happy’ pig by up to 20pc.

Danish Beef Cattle products in the cold counter will include tenderloin, entrecôtes, filets, bottom round roasts, rump steaks and sirloin steaks as well as porterhouse steak, topside, outside and knuckle cuts. |

80PC OF PORK SOLD BY IRMA IS EITHER ORGANIC OR FRILAND FREE-RANGE PORK 13.11.09 Sales of organic pork by the Irma supermarkets have in recent years virtually exploded, and organic pork now accounts for 23.3pc of total sales of pork.

And 56.4pc of sales are of Friland free-range pork. All in all, organic pork and Friland freerange pork now account for 80pc of total pork volumes sold

by Irma. In terms of revenue, the percentage is even greater.

Irma Index is the name of a survey conducted by YouGov Zapera for Irma this year. The survey shows that animal welfare and well-being is a priority for 64pc of all consumers.

It also shows that for 66pc and

71pc of Danish consumers, respectively, quality is associated with animal welfare and the respectful handling of raw materials. | Meat from free-range pigs a hit in Irma

- Bornholmer pork has become the fastest-growing innovation within our premium segment of superbrands, which are one step up from our basic range of conventional meat products, explains Jimmy Andersen, Assortment Manager with the Kvickly supermarket chain responsible for meat and delicatessen.

- Bornholmer pork is sold by all Kvickly supermarkets in Denmark, and the many new packs of happy pig and premium flavour pork will be ready for the Christmas rush, says Jimmy Andersen.

Sales are evenly distributed across Denmark. How­ ever, sales are highest in Jutland, whereas the individual shops selling most are found on Zealand. |

Pork from Bornholmer pigs has quickly become popular.

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| CULTURE | 37

NEW SALAMIS WITH LESS FAT 06.01.10

Tulip -30% has quickly become popular with Danish consumers. Last year alone, Danes reduced their fat intake by 157 tonnes through buying Tulip -30% cold cuts, liver pâté and salami. And without missing out on taste, of course.

and a traditional salami, and both are in the shops now.

- The two new salamis are just as flavourful as other salamis, with just less fat, says Trade Marketing Manager in Tulip Jeanette Valter. |

The campaign kicks off seriously from next week with radio and TV spots, banner ads on well-known websites and Facebook as well as full-page ads in the family magazine Ude & Hjemme and the royal weekly magazine Billedbladet.

TULIP CUTS DOWNON FAT Focus is on both flavour and fat when Tulip launches two new keyhole-labelled meatball variants in new packaging – a new chicken meatball with only 5pc fat and a low-fat version of the classic meatball with only 9pc fat.

Subcategory Manager with Tulip Lene Rantzau is delighted that the company is now launching two new products which are both very tasty and

01.12.09 If you want to celebrate Christmas in true Danish style, the roast pork, Cumberland sausage, tenderloin and all the other Christmas classics must, of course, be 100% Danish. This is the message of a grand Christmas campaign now being launched

by Danish Crown’s Domestic market department.

And now the choice will be even greater for Danes wanting it all, as Tulip -30% is launching two new salamis. The new products are a garlic salami

12.08.10

100% DANISH CHRISTMAS WITH DANISH CROWN

- The aim of the campaign is to make consumers aware that the 100% Danish label includes all the pork products that go with a traditional Danish Christmas dinner, says Danish Crown’s Sales Manager, Torben Pedersen. |

so low-fat that they are eligible for the keyhole label.

- IT TASTES LIKE REAL LAMB

- Many consumers prefer lowfat products, but developing products with a reduced fat content without compromising on taste takes time; however, this is what we have done with our new meatballs, and I hope that lots of people will want to taste them, says Lene Rantzau.

The well-known and popular classic Danish meatballs are also still available. |

24.03.10 The results of a big test in the free newspaper 24timer are unequivocal: The best lamb is Danish Crown’s Marsk Lamb, which is reared in the marshland areas of northern Germany.

The lamb scores top marks with six out of six stars. The legs of lamb from both Danish and foreign animals were tested by the chefs Erik Larsen and Søren Damgaard from Copenhagen Hospitality College, who gave the following assessment: - Wonderfully succulent. It tastes just as lamb should taste. The meat has a soft structure – it almost melts on the tongue. No trace of fat or wool in the mouth. Mmmm… |

750 KM OF CUMBERLAND SAUSAGES FROM HERNING 21.12.09

Herning and Amsterdam.

Christmas is a time for setting records at Danish Crown’s retail packaging department in Herning in Jutland.

- We have been working extremely hard, but nobody real­ ly expected to be breaking records like this, says Production Manager Allan Ernstrøm.

Last week, the department set a new record by producing twice as much minced meat, Christmas Cumberland sausage and other products destined for supermarkets throughout Denmark as originally planned.

The Cumberland sausages alone set a record with 750 kilo­metres of sausage – but for a few kilometres, this corresponds to the distance between

Production at the retail packaging department in Herning is now 40pc higher than expected three years ago. In the past twelve months alone, production has increased by 14pc. |

DANES ARE TAKING A TIMEOUT 09.04.10 Figures from the eleven fast-food Tulip TimeOut outlets located around Denmark show that the chain is enjoying enormous success. Customers are attracted by the combination of traditional fastfood and healthy freshly made sandwiches.

- Tulip TimeOut offers a bigger assortment to customers. They can buy the traditional and popular fastfood, or they can choose between various freshly made sandwiches, foccacia rolls, rosemary toast and many other products, says Tulip’s Brand Manager Lene Grosen.

The TimeOut range therefore appeals to the whole family.

At the same time, Tulip TimeOut is a tightly managed concept so that no compromises are made with regard to quality.

Read more about Tulip TimeOut and see current shop locations at www.tuliptimeout.dk. |

38 |

CULTURE

| BRINGING DC QUALITY HOME

AN EYE FOR THE RIGHT INGREDIENTS Real whisky in the marinade – that is what is required to give the meat an authentic flavour. This year, DC has therefore developed its own marinade based on the real thing.

mix we purchased, and therefore we developed our own – based on the real thing, says Finn Klostermann.

27.04.10

- There is a delightful aroma in the air when we marinate the meat. And it always gives rise to a few more jokes. But I can guarantee that every single drop of whisky ends up in the marinade, says Pia Mejl Krautwald with a smile. |

The new grill products from the Beef Division are proving popular in the shops. The whisky-marinated products in particular are selling extremely well, says Sales Director Finn

The marinade has been developed in close collaboration between the department in Sdr. Felding and Product Developer Pia Mejl Krautwald from the Beef Division. When the marinade is mixed, four litres of Scotch whisky is used for about 800 kg of meat, she says.

Klostermann, who also has an idea of why: - We use real whisky in the marinade to give it a more authentic flavour. Last year we weren’t completely satisfied with the ready-made marinade

‘MY MEAT’ IS GOOD FOOD ON THE TABLE Under the heading ‘Mit Kød’ – in English ‘My Meat’ – organic farmers will be able to promote their wares in the coming months at a number of supermarkets throughout Denmark.

16.08.10 Ten SuperBrugsen, five Irma and four or five SuperBest super­markets will in the near future be named ‘Ambassador shops’ by Friland, which means they will be able to offer a particularly wide range of organic products.

In connection with the so-

CAMP FIRES, TOGETHERNESS AND FOOD FROM DANISH CROWN 22.07.10 On Saturday, Skive in western Jutland is being invaded by 15,000 scouts from all over Denmark. 120 hectares of land will be transformed into a minor provincial town with a host of facilities when Korpslejr 2010 provides the setting for KFUM-Scouts of Denmark’s centenary celebrations. And all these scouts will invariably feel hungry.

Danish Crown is therefore involved in making traditional scout dishes from 1,250 kg of diced pork, 750 kg of chops and almost 2,000 kg of minced beef.

- We are thrilled that the KFUM-Scouts are again choosing us as a supplier at their jamboree. It is always exciting to feed so many people, and a bit of a challenge when it takes place out in the open, says Søren Overgaard, Sales Manager in Danish Crown’s Domestic market department. |

called ‘Eco caravan’, several SuperBrugsen supermarkets already became Friland Ambassador shops this summer, but in the coming week the campaign will be extensively rolled out, and the refrigerated display cabinets in several shops will be decorated with grassy sides, and posters and recipes will be placed around the stores.

Organic farmers and their commitment are the focus of the Ambassador campaign which, under the heading ‘My Meat’, describes the most important qualities of organic farming.

Concurrently with the opening of the Ambassador shops, Friland’s new ØKO logo is being launched. |

The Ambassador campaign is focusing on organic farmers and their commitment.

BRINGING DC QUALITY HOME

| CULTURE | 39

FOOD BEHIND BARS WITH DANISH CROWN 07.12.09

FROM CAMPSITE TO CLASSROOM During the summer, 15,000 Danish campers were able to sample Tulip’s cold cuts for schoolchildren.

12.08.10 This week a lot of children are returning to school after a long summer holiday. And Den Grønne Slagter – the green butcher – has been working hard to ensure that their lunchboxes will be a highpoint of the day with two new exciting additions to the Den Grønne Slagter’s children’s range.

- In addition to the three classics – rolled meat sausage, ham and chicken – we are ready to present a new salami and new mini meatballs, both containing only 9pc fat. Like the other products in the children’s range, these new products have been developed for young children both in terms of size and taste, says Brand Manager in Tulip, Kamilla Wetke.

However, about 15,000 Danes have already sampled the delicious sliced meats in connection with Den Grønne Slagter’s summer campaign, where cold cuts and brochures were distributed to families with children at 42 Danish campsites. Kamilla Wetke feels certain that many of the campers will go for Den Grønne Slagter’s children’s selection when back into the swing of the daily lunchbox routine. |

Tulip employees distributing cold cuts and brochures to Danish campers.

The inmates at the state prison Statsfængslet Midtjylland had a unique culinary experience when a new concept, Jailhouse Cooking, opened their eyes to the fact that food is not just food.

long-term detention. It was in this context that he had the idea for the Jailhouse Cooking concept. A concept where Danish Crown supplied the protein-rich raw ingredients consisting of veal chuck rib, roast pork and côte de boeuf – cut from beef fillet.

The man behind the concept is the artist Jens Juul. Together with the writer Elsebeth Hagen, Jens Juul is in the process of writing a book about

- Prison inmates are often people who have been neglected in their lives. Something as down-to-earth as making food cultivates people and re­

inforces their sense of togetherness. This is one of the things that inmates often need, says Jens Juul.

- Little by little, the inmates dropped their defences and relaxed and threw themselves into the cooking, recalls Jens Juul, who thinks that it went really well, so much so that the Jailhouse Cooking team is planning on extending the concept to other prisons in Denmark. |

40 | INTERNATIONAL | DANISH CROWN ALL OVER THE WORLD

DANISH CROWN ALL OVER THE WORLD Outlook for the ten markets DANISH CROWN GROUP Development in sales from 2008/09 to 2009/10 (tonnage) 0% -1.6%

WORLDWIDE EXPORTS

-2.2%

-4.5%

13.9%

56.7%

-7.3%

4%

11.6%

DENMARK

UK

GERMANY

SWEDEN

RUSSIA

USA

JAPAN

CHINA

No change is expected in developments in the Danish market.

Competition in the large UK retail market has intensified considerably. Danish Crown and Tulip are still good brands in the market, and so slightly increasing sales are expected.

Following the acquisition of two companies in Germany and an increasing number of slaughterings, German sales will increase.

The Swedish market is Danish Crown’s second home market, and positive market developments are forecast.

After a marked increase in sales last year, the market is expected to slow down a bit.

More or less unchanged revenue is expected, but with a change in the customer segment mix.

The market is expected to be on a par with last year.

After very moderate growth last year, sales are expected to be stable in the coming year.

The Chinese market is the world’s largest market for pork. Despite marked growth last year, further increases in sales are forecast.

Danish Crown is the largest meat exporter in the world. With exports to more than 100 countries worldwide, Danish Crown is a major player in the world market.

In 2009/10, the company is posting the best results ever in the company’s history.

37.2%

REST OF EUROPE

REST OF THE WORLD

Increasing sales to the rest of the European markets are expected.

Sales trends are closely linked to general market trends for pork.

With increasing prices of alternative proteins and feed prices remaining high, a good sales situation is expected. Interesting developments may be seen in a number of new and exciting markets.

GROUP KEY FIGURES DKKm

2005/06

2006/07

2007/08

2008/09

2009/10

48,534

44,346

46,972

44,757

45,211

1,860

1,872

1,816

1,730

1,857

18.8%

Income statement Revenue Profit from primary activities Net financials Net profit for the year

-490

-491

-672

-459

-257

1,232

1,230

997

1,164

1,648

21,706

21,279

23,016

21,306

22,153

849

849

2,446

1,411

812

1,000

1,000

1,000

995

997

-1.6% -2.2%

Balance sheet Balance sheet total Investments in property, plant and equipment Subordinate loan Equity Solvency ratio *)

56.7%

13.9%

3,844

4,132

3,975

3,940

4,639

22.3%

24.1%

21.6%

23.3%

25.4%

2,738

1,321

-246

1,776

1,656

26,938

24,334

26,652

24,274

23,305

-7.3%

-4.5%

11.6% 4%

Cash flows Cash flows from operating and investing activities No. of employees Average no. of full-time employees

DANISH CROWN GROUP Development in sales from 2008/09 to 2009/10 (tonnage)

Supplementary payment, DKK per kg Supplementary payment, pigs

0.65

0.75

0.60

0.70

0.95

Supplementary payment, sows

0.65

0.55

0.65

0.65

0.75

Supplementary payment, cattle

0.90

0.85

0.70

0.75

1.25

There’s something right about this, and something very wrong…

Supplies from members weighed in (million kg) Pigs

by Mikael Wulff and Anders Morgenthaler

1,504.8

1,468.9

1,426.7

1,272.3

1,245.7

Sows

72.2

67.7

68.1

62.8

62.6

Cattle

67.8

69.7

64.3

66.7

68.8

15,044

13,465

12,152

10,685

9,847

No. of members No. of members

*) Calculated on the basis of subordinate loan and equity.

Please note that the figures for 2008/09 and 2009/10 are stated in accordance with the IFRS standards, while the figures for previous years are stated in accordance with the Danish Financial Statements Act.

The first step in the invention of the sausage.