Positive figures on the bottom line at all DAT-Schaub’s production and sales companies testify to the considerable demand for the company’s products.
This succinctly describes the situation for DAT-Schaub, and CEO Jan Roelsgaard is very satisfied with developments.
In 2009, we have been unable to achieve the record high prices seen in 2008, but demand for our products has been strong, and the market for natural casings is again developing positively, reports Jan Roelsgaard.
Artificial casings have also enjoyed strong price increases in recent years, but now more moderate price growth is being seen.
However, this doesn’t change the fact that customers are still having to wait for the most popular qualities, confirming that many customers prefer our products, says DAT-Schaub’s CEO.
Moreover, DAT-Schaub has been significantly strengthened in the North American market for natural casings as the company has acquired 50 per cent of the equity in Casing Associates LLC, which generates annual revenue of USD 50 million.
Obviously, this will reinforce our position in North America considerably, and expectations are high with regard to both sales and market position, says Jan Roelsgaard.
He is in no doubt that the recent structural adjustments mean that DAT-Schaub has become a sought-after partner for the food industry both in countries where the company has offices and in the export markets served from Europe and North America.
The positive development in prices for pork casings means, ironically enough, that DAT-Schaub can look forward to lower earnings in future as suppliers are paid cash up front.
As of the start of the financial year, the principles governing the prices paid to Danish owners have been changed. The casings are now continually settled at market price, while the previous payment was part of DAT-Schaub’s profit. The new principle will, all else being equal, reduce the nominal financial results.
Therefore we are delighted to be able to deliver very satisfactory financial results this year, where a triple-digit million sum has been paid out in regular instalments to our cooperative members, says Jan Roelsgaard.