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European consumers have again acquired a taste for spending money on good animal welfare and organic meat. For the first six months of the financial year Friland’s revenue increased by one percent to DKK 484 millions. If revenue is adjusted for the drop in supply of slaughter animals to Friland the company’s revenue in fact increased by 10 percent. 

- We have succeeded to turn the tide in our business as the inflation has decreased. We increased our sale of organic products in both Denmark and several of our export markets and I will therefore describe our result as okay because we have had the ability to increase both prices and our utilisation percentage which are the parameters we control, says Søren Tinggaard, CEO of Friland. 

Friland’s organic suppliers have in particular been challenged by several, difficult years with very high production costs. This has cut the supply of animals to Friland short and means the Friland has received 13 percent fewer kilos of organic pigs. Supply of organic cattle dropped by five percent in kilos while 10 percent less kilos have been supplied to the Free Range Pork concept over the first six months of the finance year. 

- We remain challenged by the fact that several suppliers have stepped hard on the breaks and lowered production. Costs especially for feed have been high over the past two years and the prices we have been able to bring in from the market where consumers have been hit by inflation have not been quite high enough to create positive results with all suppliers. We therefore need to increase earnings further to ensure a sustainable business in supplying animals for Friland, says Søren Tinggaard.  

In 2023 organic food and in particular organic meat were hit by declining demand from Danish consumers. Figures from Statistics Denmark show that in 2023 the sale of organic meat dropped by 14 percent in Denmark. However, this trend has now U-turned. Measured in revenue Friland’s sale of organic pork and Free Range Pork to Danish retail chains have increased by five percent compared to the same period in 2022/23. 

- Demand for our concepts have been good and continues to increase in Northern Europe. We see that consumers are returning but still quite a lot remains before organic food is back to the level we saw just three years ago, says Søren Tinggaard. 

Jais Valeur, Group CEO in Danish Crown, is content with the fact that the Friland business is yet again moving forward. 

- I am pleased that Danish consumers are once again choosing Friland products after a couple of difficult years. Our belief in organic food is unchanged and we fight together with our cooperative owners in pushing development of the market, says Jais Valeur.  

The average settlement price has increased from DKK/KG 22.40 to DKK/KG 23.52 for organic pigs for the first six months of the finance year compared to the same period last year. For organic cattle the average settlement price in the period was DKK/KG 29.28 against DKK/KG 30.39. To suppliers of Free Range Pork the settlement price was DKK/KG 15.37 against DKK/KG 15.12 in the same period the previous year. 

- We have more customers who have entered into strategic partnerships with us and we see demand from customers who wish to enter into similar partnerships. This is really positive and give us reason to believe that over time we can raise Friland further, says Søren Tinggaard. 

- I am pleased that Danish consumers are once again choosing Friland products after a couple of difficult years.