Tönnies shows off extra turnover and more slaughter

More slaughter and more turnover dominate the results of the meat group Tönnies for 2016. The family business, also market leader in Germany, admits that the conditions were challenging in a market with strong competition. Despite this, the company managed to realize an extra 50 million euros in turnover.

In total, the slaughter figure of Tönnies was 20,4 million pigs, of which 16,2 million in Germany. This is an increase of more than 2 percent. In absolute numbers, this amounts to 400.000 extra pig carcasses compared to 2015.

According to Tönnies, the 424.000 slaughtered cattle are somewhat insignificant. In other words, the focus of the meat group is still on pigs. With these numbers, the meat group managed to achieve a turnover of 2016 billion euros in the various countries in 6,35.

In its own words, Tönnies further strengthened its market position in 2016. 'Due to a structural investment policy, we are well positioned in a market with fierce competition', says foreman Clemens Tönnies. According to Tönnies, Germany remains the most important market for the meat group, but other markets are also receiving attention. 'The acquisition and integration of the Danish Ticans is a concrete example of this. Tönnies is also active on the British market. 

The first months of 2017 are anything but prosperous for Tönnies. At the beginning of this year, Tönnies lost its export license to lucrative China, which means that no meat can be sold there at the moment. As a result, Germany's largest slaughterhouse is currently mainly dependent on the European market. Tönnies itself expects the export license to be issued again in mid-March, so that sales to China can get going again.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

© 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.