Turnover record for German meat sector in corona crisis

The German meat sector achieved its highest turnover ever in March, according to data from statistics service Destatis. This is mainly due to the good sales to China. A change is visible from April. 

In March, when the corona pandemic hit Europe, the turnover of the German meat sector was €3,9 billion. Compared to the same month in 2019, this is an increase of 25%. In April, when Germany was in the midst of lockdown, sales fell to €3,4 billion. That level is still the same as the same month a year earlier. Revenue in the first quarter of this year amounted to €14,2 billion. This is more than 10% more than in the same period last year.

High pig prices 
The turnover of the German meat sector, based on 563 meat companies, achieved a total turnover of €2019 billion in 39,7. This is an increase of 7,9% compared to 2018. In previous years, turnover was more stable. According to Destatis, the increase is due to the increased pig prices in Germany, which means that meat companies are turning more sales. This is mainly due to the smooth export of meat to China. In the first 4 months of this year, sales to the Asian country, which is struggling with major meat shortages, doubled. The Netherlands also benefited from this.

hitch
However, there has been a hitch in the 'export cable'. In June, for example, China announced an export ban for the German meat company Tönnies, due to a major corona outbreak at the company's main location. This makes it plausible that the turnover of the German meat sector will not continue its upward trend. Dutch slaughterhouses, including Vion and Van Rooi, have also been banned from exporting pork products to China since this week. According to the trade association COV, the meat ban a temporary character.

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

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