In March, Danish Crown introduced a contribution margin guarantee for new, younger unit owners to secure more pigs. It was one of five initiatives to secure more pigs, and it is now being expanded to also include new pigs for the company.

Until September 2026, pigs purchased as weaners will be placed in empty barns, thereby increasing the total A quantity, and thus have the opportunity to receive a new DB guarantee of DKK 125 per pig.

"We are noticing a clear optimism among our owners, where more people want to put in pigs, but naturally also want to see the improved competitiveness maintained. Therefore, it has been decided to remove some of the risk by introducing the option of a new DB guarantee, which ensures DKK 125 per pig based on the average costs", says Søren Tinggaard, director of Danish Crown Owner Service.

The new DB guarantee is based on the calculated price, adjusted for the market price of the purchased piglet and any allowances obtained, such as growth allowance, UK allowance, etc. This covers the risk of, for example, having purchased a piglet that is too expensive compared to the slaughter pig price.

The guarantee requires that a trade of piglets has been made between the sow farmer and the slaughter pig producer. It will apply to a maximum of 5,000 pigs per week and requires a prior agreement with Danish Crown Ejerservice. The pigs will be taken in continuously until the target of 5,000 is reached.

"A stable supply of raw materials that corresponds to our slaughter capacity is a cornerstone for maintaining a competitive listing. We therefore hope that more unit owners will look at the possibility of taking empty pen spaces into use and delivering pigs for slaughter at Danish Crown", says Søren Tinggaard.

The contribution margin guarantee will be calculated annually in connection with the closing of accounts at Danish Crown on September 30, and if the DB guarantee is triggered, it will be paid out in connection with the remaining payment.