Vion Revises Business Portfolio in Germany

In line with trends across the meat industry, Vion Food Group, a leading international producer of meat and plant-based alternatives, is adjusting its strategy in key markets, particularly in Germany.

Vion has outlined a comprehensive set of measures for its operations in Germany, set to be implemented in 2024. These include divestments and closures aimed at optimizing business operations. The intention is to sell the beef slaughterhouse and pre-packaging facility in Altenburg, along with the ham specialist Ahlener Fleischhandel, to Tönnies Group. Additionally, Vion plans to sell the pig slaughterhouse in Perleberg to Uhlen GmbH. Agreements for these transactions have been signed, with completion expected in the first quarter of 2024.

Impact on Employees and Stakeholders

These shifts will affect approximately 700 employees, but Vion ensures a careful transition period for all involved. For the pig slaughterhouse in Emstek, where no acceptable bids have been received, closure is planned by the end of March 2024, impacting around 750 employees. Vion is committed to providing support and exploring alternative employment options, including consultations with the works council regarding a social plan.

Vion's Commitment to Sustainable Development

Ronald Lotgerink, CEO of Vion Food Group, emphasizes the importance of efficiency and flexibility in business operations. He underscores the commitment to sustainable supply chains connecting farmers, customers, and partners amid these strategic changes in the business portfolio.

Challenges and Strategic Shifts in the European Meat Industry

The European meat industry, particularly in Germany, faces challenges such as global competition, African swine fever, and political and regulatory factors. These challenges have led to strategic restructuring, especially in the pig sector, addressing overcapacity amidst demands for sustainability and affordability. The beef sector is undergoing a similar adjustment due to declining production figures and changing consumer behavior. Vion's revisions in its German business portfolio reflect these broader trends and challenges in the European meat industry.

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