Market Pulse: Tican Outperforms Danish Crown with €8.4M Supplier Bonus

Lead Story: Tican Outperforms Danish Crown with €8.4m (63m DKK) Extra Payment

In a major competitive move within the Danish pork sector, Tican has confirmed it paid its suppliers 63 million DKK (€8.45 million) more during the 2024/25 slaughter year than if it had followed rival Danish Crown's pricing structure.

Key Financials

• The Premium: CEO Steen Sønnichsen revealed that Tican's higher quotation price effectively delivered a significant bonus to farmers, totaling 146 million DKK in extra payments since 2023.

• The Shift: Historically, Tican has aimed to be a "watchdog" on pricing. In late 2023, Tican's price was up to 50 øre/kg higher than Danish Crown, though this gap narrowed to 20-40 øre by May 2025.

• Bonus Pause: Despite the strong performance, Tican announced it will pause its market supplement (markedstillæg) effective 1 January 2026.

  • Reasoning: The decision is directly linked to market volatility caused by the African Swine Fever (ASF) outbreak in Spain. Sønnichsen warned that displaced Spanish pork could flood the European market, depressing prices.

Implications

• Supplier Loyalty: Tican is aggressively positioning itself as the more profitable partner for independent Danish farmers, challenging the cooperative model's dominance.

• Market Caution: The pause on future bonuses signals that European processors are bracing for a bearish Q1 2026, anticipating that the "Spanish surplus" will erode margins across the continent.

Suggested Actions

• For Farmers: Danish producers should evaluate total yield (quotation + supplements) rather than base price alone when negotiating 2026 contracts.

• For Competitors: Danish Crown and German cooperatives must address this pricing gap in their upcoming member communications to prevent supplier churn.

Global Trade: Australian Beef Exports Smash All-Time Records

While Europe battles disruption, Australia is capitalizing on global shortages. New data released today shows Australian beef exports reached a record 1.398 million tonnes by the end of November 2025, up 15% year-on-year. The surge puts the industry on track to exceed 1.5 million tonnes for the full calendar year.

Key Drivers

• US Demand: The United States remains the primary engine of this growth, importing over 412,000 tonnes of Australian beef (up 17% YoY) to plug the gap left by its own shrinking domestic herd.

• Grain-Fed Surge: Exports of grain-fed beef specifically hit a calendar year record of over 403,000 tonnes, signaling that Australia is successfully targeting premium marbling tiers in Asia, not just the grinding meat market.

Implications

• Market Power: Australia enters 2026 in a dominant position. With US production expected to remain tight, Australian exporters will likely maintain strong pricing power throughout Q1.

Brazil: Pork Competitiveness Surges as Beef Prices Climb

New analysis from Cepea (Center for Advanced Studies on Applied Economics) reveals that pork is rapidly gaining competitive ground against beef in the Brazilian domestic market.

Market Dynamics

• Price Spread: The price gap between beef and pork has widened significantly. Wholesale beef prices in São Paulo have jumped 16.8% year-on-year, while pork carcass prices have risen only 5.5%.

• Consumption Shift: The average price spread now stands at 9.47 Reais/kg, the widest margin since 2022. This disparity is driving price-sensitive Brazilian consumers away from beef cuts and toward pork and chicken alternatives.

Implications

• Domestic Support: This trend provides a crucial safety net for Brazilian pork producers. Even if export markets fluctuate, robust domestic consumption driven by favorable pricing relative to beef will help sustain volumes.

Sources

• Effektivt Landbrug: Tican betaler 63 millioner kroner ekstra til leverandører (Verified 10 Dec 2025)

• Beef Central: Australian beef exports smash records (Verified 10 Dec 2025)

• The Pig Site: Pork gains ground as beef prices climb in Brazil (Verified 10 Dec 2025)