News Pigs
Tönnies suffered a significant loss of turnover in 2021
Tönnies has had a difficult year. Corona and African swine fever (AVP) have put companies in the German meat industry in a difficult position.
Germany's largest slaughter company reports this in an explanation of the 2021 result, in which, as usual, it does not disclose financial details. Tonies only says that it has seen its turnover fall by about 2021% over 12 to a total of € 6,2 billion. In 2020, the turnover still amounted to a sloppy €7,2 billion. The company cites the low pig prices and the sharply reduced animal numbers in Germany as the main cause of the declining turnover figures.
Corona has reduced meat consumption
At the same time, Tönnies has suffered a lot from the consequences of the corona pandemic† Restaurants and canteens remained closed, football stadiums remained empty and large events and parties could not take place for a long time. "As a result, meat and sausage consumption automatically decreased," the company said.
In addition, the presence of African swine fever (ASF) in Germany is putting pressure on the export position of German meat companies. Like all German pork exporters, Tönnies can no longer sell snouts, tails and legs in Asia. Moreover, according to the company, there is a lack of alternative sales markets to bring these cuts to good value.
Clemens Tönnies calls the 2021 results "unsatisfactory." Nevertheless, according to the foreman, the group was able to maintain its market share and even expand it somewhat. In addition, he indicates that the company continues to focus on qualitative growth whereby more animals are processed that are kept according to higher animal welfare standards. According to their own account, more than 50% of the number of slaughtered animals already come from farming systems that use animal welfare standards that exceed the statutory standards.
Employee contracts and sustainability agenda
In 2021, companies in the German meat industry were required to hire staff for the first time. Previously, labor was often hired, which sometimes led to dire housing situations. Tönnies blames itself for having stuck to these constructions for too long and is content with the steps taken last year.
In addition to this change of course with regard to personnel policy, Tönnies has continued to invest in the sustainability agenda, despite the more difficult market conditions. The 'T30 agenda' will also receive a lot of attention in the coming years. "Efficiency and sustainability are not a contradiction. It is our task to achieve security of supply with guaranteed animal welfare, attention to the environment, social responsibility and a fair price for all parties in the chain."
Steve Wissink
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