The goal of the updated scheme is to support modernization and strengthen the long-term competitiveness of Danish pig farming.
Previously, farmers received a fixed supplement of $0.03/kg (20 øre) over five years. Now, a graduated model has been introduced:
- $0.11/kg in the first year;
- the subsidy will decrease by $0.014/kg each subsequent year;
- by the fifth year, it will amount to $0.055/kg.
This structure provides an average bonus of $0.08/kg in additional profit during the first five years of operation of a new pig facility.
Danish Crown Group CEO Niels Ulrich Duedahl emphasized that the new scheme has a dual effect — it stimulates economic growth while reducing the environmental impact of pig production.
“Building modern pig facilities is not only a path to competitive production but also a way to create thousands of jobs and reduce the carbon footprint of the industry. We take responsibility and support those who are willing to invest in the future,” Duedahl said.
According to the new model, a farmer who constructs a new facility can receive financial support covering up to 25% of investment costs, provided that construction expenses are around $570 per pen (≈4,000 Danish kroner).
In addition, Danish Crown offers supplementary financing of approximately $93 per pen, at an annual interest rate of 4.8%, to be repaid over five years through the balance payment system.
Søren Tinggaard, Director of Owner Service at Danish Crown, noted that interest in new building projects among producers has increased significantly:
“We see a growing willingness among farmers to modernize their operations. The increased subsidy will help many realize their plans. It’s an investment in the future — both for the individual producer and for the entire Danish Crown,” he said.
To qualify for the subsidy, construction must begin no later than six months after the agreement is signed.
The updated Danish Crown program is part of Denmark’s national strategy for sustainable agricultural development, combining economic support for farmers with environmental responsibility and the implementation of innovative technologies in livestock production.
Source: PigUA.info, based on euromeatnews.com