Bankruptcies in Germany
Meat processors are in trouble
The rapidly rising pig prices in Europe are causing problems further down the chain. Last week, 2 meat processing companies in Germany filed for bankruptcy. According to the German trade magazine Lebensmittelzeitung, it is 5 to 12 for many meat processing companies.
The imminent bankruptcy concerns Lutz Convenience Food from Landsberg (Bavaria) and Astro from Verl (North Rhine-Westphalia).
In his own words, the attracted pig prices for Lutz are the straw that breaks the camel's back. Lutz is a major player in the meat processing industry in Germany and has 7 production locations, 29 branches and more than 1.000 employees. The company has been for sale for a long time. Meat concern Tönnies has reportedly shown interest in the company's cattle slaughterhouse. Family business Astro is a lot smaller and has approximately 168 employees. The company produces about 12.000 tons of meat products annually.
harbinger
According to the German trade magazine Lebensmittelzeitung, these bankruptcies are a harbinger of more. The purchase of raw material or meat is about 70 percent of the costs. Meat prices have risen considerably since 2016, which is why the financial reserves of many companies have run out. If the selling prices of processed meat products do not pick up, more processors will sooner or later be in trouble.
Wouter Job
© 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.