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Inside Pigs

Tönnies slaughter number increases despite tight supply

2 April 2020 - Chanti Oussoren

The prices of slaughter pigs have increased sharply over the year 2019. Price-determining factors are a declining supply and an increasing demand for pork from China. Despite the tighter supply, Tönnies slaughterhouse has managed to slaughter more pigs.

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Between January and December, the German price for pigs for slaughter rose sharply. The price rose from €1,36 per kilo at the beginning of the year to €2,03 at the end of the year. On the one hand, this increase can be attributed to a decreasing supply. On the other hand, the price increase is the result of the increasing demand for pork from Asia, especially from China. It is estimated that at least half of the pig population has been killed there by African swine fever. Companies with an export license to China could benefit greatly from this.

Tönnies remains the market leader
Despite tighter supply on the German pig market, Germany's largest slaughterhouse, Tönnies, was still able to grow. There, the number of pigs slaughtered increased by 0,6% to 16,7 million pigs. This ensured that the market leader further increased its distance from the competition. With a market share of more than 30%, the company slaughtered more pigs than Westfleisch and Vion combined. Tönnies benefited greatly from increasing demand from China in the second half of the year.

Tönnies has animal welfare and sustainability as key points on the agenda for the coming years. The company wants to improve the animal welfare of pigs in Germany and has developed a sustainability vision. Within 5 years at the latest, the company wants 70% of the pigs supplied to come from stables with far-reaching animal welfare and climate-friendly measures.

Westfleisch takes second place
Slaughter numbers fell at the Westfleisch slaughterhouse in Münster. 1,2% fewer pigs were slaughtered, bringing the total number to 7,7 million pigs. Despite the decrease in slaughter numbers, they still take second place, behind leader Tönnies. This knocks Vion out of second position. The good export earnings in the second half of the year provided some compensation in the balance sheet. The downside of this was the high raw material costs for our own processing industry.

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