Business

Danish Crown to construct £100m gammon manufacturing unit in UK regardless of Brexit purple tape

Danish Crown, the European pork producer, will construct a £100m gammon and bacon manufacturing unit within the UK regardless of dealing with a mountain of purple tape post-Brexit.

The 30,500 sq. meter manufacturing unit, in Rochdale, Higher Manchester, might be absolutely powered by renewable power and can create 300 jobs after it’s operational. It should use warmth recovered from its utility system as a substitute of typical heating to warmth the workplace house and supply scorching water.

The funding comes regardless of corporations grappling with rising ranges of paperwork within the wake of Brexit.

Jais Valeur, chief govt of Danish Crown, mentioned: “The UK is now a ‘third nation’ in keeping with the US or Asian markets once we export.”

Mr Valeur mentioned the Danish Crown was required to provide “a heavy set of paperwork for each cargo or cost to the UK”, amounting to an additional 33,000 pages per yr.

Due to its dimension, Danish Crown is just not struggling, says Valeur, however he recommends smaller companies face “not possible” ranges of paperwork.

Denmark Crown’s new manufacturing unit, which is the primary UK manufacturing facility in three years, may have the capability to provide greater than 900 tonnes of pork and gammon per week when absolutely operational. It’s anticipated to be operational within the second half of 2023.

The corporate additionally hopes to interrupt down meals waste through the use of bacon offcuts in different merchandise corresponding to sausage.

Regardless of the issues attributable to Brexit purple tape, Mr Valeur mentioned he had confidence in Britain’s prospects. He added: “There are numerous issues however I am proud to have the ability to create some jobs right here.”

England has the best per capita consumption of bacon in Europe at 3kg a yr, considerably greater than different European international locations corresponding to Denmark which has the second highest consumption at round 1.9kg, in line with Kantar information specialists.

Extra households are choosing cheaper cuts of meat corresponding to gammon and pork, Mr Valeur added, because the cost-of-living disaster strains funds.

He mentioned: “British customers are below great stress due to inflation, however they’re reacting to that by going extra into non-public label and discounting – Danish pork is extra suited to that.”

Nonetheless, he mentioned companies have been pressured to boost costs on account of surging power prices and must do extra.

Mr Valeur mentioned: “There might be a rise in costs. However we count on power prices to drop after which issues will begin to normalize.

Surging feed and power prices have hit UK pig farmers exhausting, forcing many to cull agriculture. Based on the Agricultural & Horticultural Growth Council, the business has misplaced round £737m in gross sales over the previous two years.

Bacon gross sales within the UK have fallen 3.7pc within the 12 weeks to October 30, whereas sausage gross sales are down 3.3pc in comparison with the identical interval final yr, in line with Kantar.

Nonetheless, Kantar says the price of residing disaster means cheaper cuts are nonetheless performing comparatively nicely as patrons look to save cash.

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