Vion withdraws rash price reduction again

Under great pressure, Vion yesterday (May 13) announced price reduction of 20 cents undone. This means that the payout price in Germany will remain 'just' at €1,80 per kilo next week. The reduction would not have been agreed with the management, the statement now reads. 

The letter to the suppliers, containing the message that the pig price would fall by 20 cents from next Monday, hit the sector very badly. In Germany, but also in the Netherlands, the rash action drew considerable criticism. In a statement, Vion now says that the content of the letter would not have been coordinated with Stephan Krusse (Farming director in Germany). 

Vion could not count on support from Tönnies and Westfleisch who did not change the pig price. The pressure on the pig price has not completely turned away from Vion yet. Due to disappointing meat sales and a wide range of pigs ready for slaughter, the market currently feels rather unstable.

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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