Friland expands operations despite pressure on the organic pork market

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An oversupply of organic pigs in Europe has pushed prices down, but the company managed to increase revenue thanks to higher production volumes and strong sales growth in Denmark and the United States.

Danish company Friland, which specializes in organic and free-range products, reported revenue growth in the first half of the 2025/26 financial year despite a difficult situation on the European organic pork market.

According to the company, the market remains under pressure due to an oversupply of organic pigs, which has particularly affected Germany — Friland’s key export market. As a result, prices for organic pork have declined significantly, especially for lower-value cuts.

Despite this, the company’s revenue increased from DKK 505 million to DKK 625 million compared to the same period last year. The main driver was a 15% increase in the number of pigs slaughtered.

Friland CEO Svend Schou Borch noted that the company managed to deliver a satisfactory result even under difficult market conditions:

“The high organic premium paid to producers has made organic pig production attractive, but at the same time it has intensified competition and increased pressure on prices,” he said.

While the German market remained weak, Friland recorded strong sales growth in both Denmark and the United States. Sales volumes in the US market grew particularly rapidly, driven by an organic segment that is expanding twice as fast as the overall food market.

In Denmark, the company also achieved double-digit sales growth toward the end of the reporting period.

Friland succeeded in maintaining a high organic premium for producers despite the overall decline in pig prices at Danish Crown. Currently, the organic premium amounts to DKK 13.85/kg plus an additional quality premium of DKK 2/kg. Overall, the organic premium increased by 11.6% year-on-year.

The free-range pig segment also remains stable, with a current premium of DKK 4.15/kg plus a quality supplement.

At the same time, the organic beef segment is facing difficulties due to high consumer prices and declining retail demand. To stabilize the business, Friland is attracting new cattle suppliers, including Thise Dairy, Tjele Gods, and Gram Slot.

The company notes that cattle shortages across Europe and competition for raw materials remain major challenges for the organic beef market.

Thus, Friland continues to grow despite the challenging conditions on the European organic pork market, focusing on stable producer support and the development of export markets.


PigUA.info based on materials from euromeatnews.com

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