Acquisition of Vogler-Fleisch

Chinese buy bankrupt German slaughterhouse

15 December 2017 - Wouter Baan - 10 comments

Vogler-Fleisch, a German slaughterhouse that went bankrupt last October, has been taken over by a Chinese investor. The Huarong-Group in Germany has bought up the estate of the slaughterhouse. It is not yet known what the plans are.

The Huarong-Group is based in Frankfurt, but is part of a Chinese investment company. This party would have bought not only the production location, but also the company houses where the staff are housed. About the takeover of bankrupt Vogler-Fleisch has been speculated for some time.

It is not yet known what exactly the Chinese have in mind with the slaughterhouse. The plans will be revealed in January at the earliest, a former employee of Vogler-Fleisch expects. The Huarong-Group also invests in German hotel complexes.

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
10 comments
john 15 December 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/varkens-feed/ artikel/10876920/chinezen-kopen-failliete-duitse-slachterij][/url]
This sounds like music to my ears. Short line to China without 20 middlemen...
Karel 15 December 2017
The Chinese (now) will soon determine what happens
That will be work for nothing (in the service of)
john 15 December 2017
Chinese have a big problem in providing the increasingly wealthy Chinese with good quality food. They will have to enter the market here just like all other slaughterhouses to stock pigs for slaughter. Because the rest of the chain is free from all kinds of trading partners, there is more left at the bottom to bid on the pigs. I don't see it as working for the Chinese, but as a market that comes to us instead of having to look for it.
Bertke 15 December 2017
Don't often agree with you John, I just think that this can be positive in the short term (read 10 yrs). For the longer term...
Daan 15 December 2017
This can turn out to be beneficial for products, as long as it does not become too great market power, it can turn out to be disadvantageous for consumers. The Chinese do not do this out of charity, in Africa they buy large tracts of land and the food grown on it goes to China, and if there is any left over, it is for the 'natives'. And so they will operate in Europe or other western countries. Such a thing is called colonialism, this time in a modern form.
BIG 15 December 2017
Made by china or made in china is stated on almost everything in 15 years' time, this will also be the case with meat.
Henk 15 December 2017
Now buy street court and everything is done
john 15 December 2017
It is immediately very nice to see that the chain stores have to put down thicker contract prices because otherwise pigs go frozen to China.

Only when the prices are structurally above the cost price will the slaughterhouses start thinking about keeping pigs in Europe themselves. For the time being, we already have to commit 115% to continue to participate. While productivity in industry is only 70%. Finding and keeping staff of sufficient quality and able to deal with that pressure is becoming a real challenge for Chinese companies as well. If within the next 10 years the prices are structurally above the cost price, who would choose to do contract work?
Jan 16 December 2017
@ Dan. That seems like a good estimate to me. Militarily, economically and demographically, they are calling the shots. And we (business) sell the know how, patents, market for short term gain.
Stupid and risky, because it entails dependence on a communist, highly self-centered, unreliable, aggressive, ruthless, morally unbridled regime.
Boycotting their products is the only way to curb them, but for the sake of greed there is no ear for that. Also a form of race to the bottom.
jan4072 16 December 2017
@Jan,
How much experience do you personally have with business with Chinese, how often have you been there yourself? I dare say that doing business in China is probably freer than here. Eg taxi Uber is not allowed here in NL, but in China it is. Internet restriction? I have not yet experienced that I did not have access to a website there. Videos, music etc are much cheaper in US than here but are not allowed to be distributed here from US. Why a free market without price fixing? The Chinese don't do that. And so I can go on. I don't mean to say that everything is hallelujah in China, but do think that you are screaming now too because you once heard something. Nothing more or less than a nice animal that sees animal abusers in all farmers.
Jan 17 December 2017
@jan4072. Yes, worked and experienced and I promise you, I will not go there again. It may be good and easy for short term gain, but that system (because it is) eats up everything we love. Just see how things are going on among their own population, who are not strictly in line. That is why the PDRK can go through a door so well: 2 hands on 1 stomach.

You don't have to have been there to recognize the badness of that system. You have to dig a little deeper to see that.
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