Deal with future-proof efficiency and sustainability

Vion is reviewing its operations in Germany and has developed a complete set of measures tailor-made particularly for this market to be applied 2024. This entails downsizing via divestments and closures.

As a part of this plan, Vion intends to promote the cattle slaughterhouse in Altenburg and Ahlener Fleischhandel ham facility to Tönnies Group. The pig processing plant in Perleberg is ready to be offered to Uhlen GmbH. The corresponding agreements have been signed. The transactions are topic to customary regulatory approvals and sure closing situations and are anticipated to be finalized within the first quarter of 2024. Vion has negotiated a switch settlement for about 700 staff from the talked about areas with the respective buying sides.

In step with the deliberate discount in enterprise operations in Germany, Vion made substantial efforts to establish a potential purchaser additionally for the Emstek pig facility, aiming to protect the location. Regrettably, no acceptable presents have been obtained throughout this endeavor. Due to this fact, Vion goals to shut this location presumably by the tip of January 2024. The meant closure will influence roughly 840 staff. Vion is dedicated to supporting these staff in transitioning to new alternatives and to exploring potential employment options. Vion will even negotiate a reconciliation of pursuits and a social plan with the works council for the affected staff.

Vion’s dedication to individuals and sustainable progress “The selections in Germany influence our staff, clients, suppliers, and companions as all of us attempt for sustainable improvement balancing financial progress with environmental accountability and social well-being. With this being a precedence, now we have fastidiously thought of modifications to make our operations extra environment friendly and versatile. We stay dedicated to constructing sustainable provide chains that join farmers, clients, and companions,” outlines Ronald Lotgerink, CEO of Vion Meals Group.

Challenges and strategic shifts within the European meat trade

European meat firms, particularly in Germany, are dealing with extreme competitors from the USA, South America, and China on the worldwide market. The outbreak of African Swine Fever (ASF) has not solely led to the lack of vital export alternatives however has additionally intensified strain on German meat firms. In response, the trade is focusing extra on the home market, transferring in the direction of self-sufficiency. These modifications, along with political and regulatory challenges within the agricultural sector, inflation and different components, resulted in declining herd sizes and excessive animal costs.

Consequently, the pork sector, specifically, is presently present process a strategic restructuring to deal with overcapacities and handle livestock densities – nationwide, however particularly in northern Germany. This restructuring happens inside a gross sales surroundings marked by a robust emphasis on reasonably priced costs, even because the trade goals to undertake extra sustainable practices, necessitating a shift in the direction of larger pricing. The meat sector faces an identical state of affairs, experiencing an annual decline in manufacturing. All these developments have led to the adjustment of our technique in our major markets and the present set of measures in Germany.

January 12, 2024 – Vion Meals Group