Danish Crown: Layoffs in Boizenburg
Danish Crown

Layoffs in Boizenburg

Imago / BildFunkMV
 A lack of orders is causing staff cuts.
A lack of orders is causing staff cuts.

GERMANY, Boizenburg. Export restrictions on German pork caused by ASF are hitting Danish Crown's northern German operation in the Ludwigslust-Parchim district hard. A lack of orders is causing staff cuts.

Bad news for the processing plant belonging to Danish Crown (DC) in the westernmost town of the German state of Mecklenburg-Vorpommern. The Danish slaughter giant announced today that the deboning plant located in Boizenburg, about 60 km east of Hamburg, will be significantly downsized. Specifically, one of two shifts is to be eliminated, which means layoffs for a total of 100 employees. The Boizenburg facility has been deboning pigs for export since 2002. While production was originally destined primarily for the Russian market, Danish Crown says it was able to successfully switch shipments to Japan after 2013. Since the outbreak of African swine fever (ASF) in Germany, however, this sales channel has been blocked, as the animals originating in Denmark and processed in Mecklenburg-Vorpommern would be considered of German origin internationally, he said.

As the production manager of DC's pig division, Per Laursen, explained, the group has been forced to sell Boizenburg production at unsatisfactory prices on the European market over the past six months due to a lack of other alternatives. However, from an economic perspective, it does not make sense to continue production in Boizenburg at the current level without the prospect of opening export markets in the near future.

Source: fleischwirtschaft.de; AgE
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