Vion

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Vion foresees significant decline in livestock

10 January 2020 - Wouter Baan - 10 comments

Meat giant Vion expects livestock in Western Europe to shrink by 10% over the next 20 years. This says CEO Ronald Lotgerink in an interview in the FD.

According to the newspaper This makes Vion the first major agricultural player in the Netherlands that dares to link shrinkage figures to climate policy. FrieslandCampina, ForFarmers and Rabobank, among others, did not dare to do this before when asked.

More meat substitutes
In addition to fewer animal numbers, Vion also expects Western European meat consumption to fall by 1 to 2% per year. Not only on the home market in the Netherlands, but also in Germany. This will lead to a higher consumption of meat substitutes. Vion expects an annual growth of 6 to 8%. Recently, Vion has been responding to this trend. For example, it has been announced that the cattle slaughter location in Leeuwarden is being converted into a production location for plant-based meat substitutes. 

Boerenbusiness Last summer, Lotgerink spoke extensively about developments in the meat market and the company's course and strategy. This interview for The Pig Analysis 2019 can be read here.

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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.
Comments
10 comments
pete1 10 January 2020
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10885255/vion-voorzit-forse-shrinkage-in-veestapel]Vion foresees significant shrinkage in livestock[/url]
Shrinkage is good for every farmer
avenue 10 January 2020
Good bold and realistic prediction.
Once done, all will benefit the livestock farmer, especially the much lower costs. Switch manure disposal must be eliminated in the chain. The farmer's position then improves in relation to the other links in the chain. Unfortunately, many farmers still have not removed the blinders.
Farmer Harms 10 January 2020
You don't think that those few farmers who stop in nl and dld have much influence on our earnings.
Take a look in northern Spain, where stables are being built for € 170,= / per fattening pig place (compare NL 450,= building and € 140,= rights. Only around LErida 3 new slaughterhouses are being built, all of which be larger than VION Boxtel.
And then we are told that we should focus on being distinctive. Get out and dream on.
Only cost will be decisive in the coming years, because the Chinese don't care about distinction.
baby 10 January 2020
BOER HARMS and so it is.
Ronald 10 January 2020
assumptions. No figures, substantiation is missing
pete1 10 January 2020
Boer Harms, I share your opinion, but it is not clear to me what your conclusion is;
Can we compete with the world market on the basis of cost price or can livestock numbers in the Netherlands and other countries in Europe that are more expensive in terms of cost shrink better?
pete1 11 January 2020
By the way, think that focusing on differentiation is sensible, PROVIDED on the basis of COST PRICE + MARGIN and not on the basis of European and certainly not for the global market.
The distinction of the better life quality mark is currently absolutely not rewarded, only the supermarkets use this as Free advertising towards the consumer. They pay only a fraction more for this meat, which does not cover the additional costs and it is even better financially to produce pigs for the world market.
In the cattle sector, a better living project is just enough to keep the farmer alive. Labor and parking are hardly reimbursed, so there is no future in it.
Geert 12 January 2020
Farmer Harms indeed. We will eventually import from cheaper producing countries such as Spain. No Dutch can compete with that
until here and no further 12 January 2020
Dear Geert, the Dutch can easily compete with that, but if the criminal organization of Rutte and co continues to write us all nonsense, yes, then it will become more difficult, but that is willful sabotage
Frans 12 January 2020
Building is not going to get cheaper in the Netherlands, 170 euros in Spain is just nonsense. Money for manure sales of 15-20 euros is no longer feasible in the long term, so manure processing can by definition be written off. Conclusion shrinkage by 20-50% is realistic and ultimately much better for the farmer.
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