By Soren Jeppesen COPENHAGEN (Reuters) -Danish pig farmers' profits are being squeezed by Chinese tariffs on Europe, Danish Crown said on Friday after reporting net profit down more than 21% at 788
Danish Crown Faces Profit Decline from Chinese Pork Duties
By Soren Jeppesen
COPENHAGEN (Reuters) -Danish pig farmers' profits are being squeezed by Chinese tariffs on Europe, Danish Crown said on Friday after reporting net profit down more than 21% at 788 million Danish crowns ($122 million) for its financial year to September 30.
Denmark's biggest meat producer and exporter said that gross profit had been hit by Chinese anti-dumping duties on European pork exports, adding that tariffs lead to reduced shareholder payouts.
"We really can't do much other than just absorb the 30% duties and try to pass some of it on to importers," CEO Niels Duedahl told Reuters.
In the end, it is the farmers, who also hold stakes in Danish Crown, who ultimately pay the price, he said.
The duties imposed in early September are widely viewed as retaliation for EU tariffs on Chinese electric vehicles.
A substantial amount of the company's exports to China consist of offal, which can only be sold at a fraction of the price in Europe and Africa.
($1 = 6.4662 Danish crowns)
(Reporting by Soren JeppesenEditing by David Goodman)
