WHJ-Winter2012

Industry Viewpoint Continued
from suppliers that produce to high
welfare schemes such as the Red Tractor
quality assurance program or equivalent.
“The only way to ensure significant
amounts of illegally produced pork are
not imported is for major retailer and
food service companies to insist, and
check, that all produce is fully traceable
and meets United Kingdom or the
new European Union standards,” says
BPEX. It is encouraging retailers and
22 | Western Hog Journal | Winter 2012
foodservice business to create dedicated
supply chains to ensure security
of supply of high welfare, legally
compliant pork.
One obvious outcome of the legislation
will be a sharp reduction in the number
of producers over the next few years as
enforcement and trade sanctions choke
off markets for illegal pork. This could
conservatively result in a 5% drop in
pig numbers.
The European Commission will demand
that member countries that cannot fully
comply with the partial ban - probably
the majority - ensure that any pigmeat
from non-compliant pig farms is
prevented from entering the European
Union market. This will create a two-tier
market for pork, which will not only lead
to chaos for inter-country trade, but will
inevitably lead to cheating, especially
through the use of non-compliant pork
in manufactured products.
Danish Crown bounces
back
Pork and beef processing giant Danish
Crown has been seeing results from
its rationalization program carried out
over the last two years. Its latest results
show earnings increased from DKK 45.2
billion ($8.28Bn) to DKK 51.8 billion
($9.49Bn), with earnings of DKK 1,762
million ($323 million) compared with
DKK 1,648 million ($302 million) the
previous year.
“This is a testament to stability, and to
the group having succeeded in creating
organic growth in a challenged market,”
said a company spokesman.
The company’s producer shareholders
benefit from increased bonus payments,
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