While the financial crisis is ravaging global stock markets and leaving its mark on household finances, many members are asking whether the financial crisis is hitting Danish Crown. Recently, one of the company’s owners was asked by his bank if he could be certain of being paid by the company. Here, CEO Kjeld Johannesen explains how the financial crisis is affecting Danish Crown.

Can Danish Crown pay its members?
It is crucial in this situation that we are a cooperative society and not a public limited company dependent on stock market prices. Looking at some of the large listed slaughterhouse companies that have seen their stock value plunge, I am delighted that Danish Crown is a strong and robust company with a strong ownership structure which, together with our financing strategy, means that we have a solid business. We control the entire value chain, and this means security and stability because of this robustness.

Can Danish Crown’s customers pay their bills?
We are in close dialogue with all our customers and keeping a close eye on market trends. Within the past week, one of our biggest customers has chosen to strengthen its strategic collaboration with Danish Crown – precisely because of our stability and resilience. We produce food – which is not something that you stop consuming. The fact of the matter is that everyone needs to eat, but not necessarily tenderloin every day – fortunately we sell the full range.

How is the financial crisis influencing Danish Crown’s financing?
If anything, the financial crisis has shown us that we have a very robust financing strategy which I am both very satisfied with and proud of. In recent years, we have ensured the necessary refinancing. Therefore we have not had to renew any of our loan agreements on this occasion.