Danish Crown stated that the duties imposed by China directly reduced gross profit and led to lower payouts for shareholders. CEO Niels Duedahl told Reuters:
“We really can’t do much other than just absorb the 30% duties and try to pass some of it on to importers.”
He also noted that, ultimately, it is the farmers—who are also Danish Crown shareholders—who bear the largest share of the financial loss.
The tariffs introduced by China in early September are widely viewed as retaliation for the EU’s duties on Chinese electric vehicles, further escalating trade tensions between the two sides.
The impact on Danish Crown is particularly severe due to the structure of its exports to China. A substantial portion of shipments consists of offal, which in European and African markets sells for only a fraction of the price Chinese buyers are willing to pay. The additional 30% duty makes exporting these products far less profitable, significantly affecting the company’s overall financial results.
The situation highlights a broader systemic risk for the EU pig sector, which remains vulnerable to external trade decisions, especially from China—one of the largest consumers of European pork.
PigUA.info based on materials from reuters.com