Vion scares sector with significant cut

In all the commotion that is already going on in the pig market, Vion is throwing extra fuel on the fire. The German branch of the slaughter group has indicated that it will lower the pig price by another 20 cents to €1,60 per kilo from Monday.

In the letter that was sent to the suppliers today (and is shared en masse via Whatsapp), Vion talks about a precarious situation on the pork market. As a result, they say they are forced to take a serious measure by sharply lowering the pig price from Monday (week 20), regardless of what the VEZG listing will do next Wednesday. The reduction applies to deliveries to the locations in Crailsheim, Landshut and Vilshofen. 

Vion's announcement is inconvenient in view of the weak market picture, just as prices were still able to stabilize in the past week. Vion Germany could not be reached for comment on Friday. 

Tönnies and Westfleisch have meanwhile announced that they will not follow Vion's movement, but will maintain the pig price for the time being at €1,80 per kilo. 

Update: Saturday 14-5 Vion will have the announced price reduction again undone. 

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.

w.baan@boerenbusiness. Nl

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