Vion announced on Wednesday 20 November that the production location of pigs and cattle in Altenburg, which is located in the German state of Thuringia, will focus solely on the slaughter of cattle from 2020 onwards. In this way, this location hopes to be able to concentrate better on further growth in the cattle sector.
In a press release, Vion reports that the production location in Altenburg will no longer slaughter pigs from the first quarter of 2020. This is partly because pig farming in eastern Germany has steadily declined in recent years. "On the other hand, various market analyzes show that the cattle population in that region has actually increased. We want to build on this growth and do this by further specializing this location in cattle," says Vion.
New strategy
The change of course for Vion Altenburg is also part of the group's new strategy. "By stopping the slaughter of pigs, this facility can better specialize in the cattle sector. This is important, because the location in Altenburg is the only cattle slaughterhouse in eastern Germany," the press release states. The increased capacity should also ensure that transport times from livestock farmers to the meat producer are significantly reduced.
The switch from pigs and cattle to cattle only means that 110 employees will lose their jobs. "These employees have now been informed and we are already discussing a social plan with them."
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.