VanDrie Group

Analysis Acquisition Gosschalk

Entrant VanDrie is putting the pig market on edge

31 January 2023 - Wouter Baan - 1 reaction

In 2016, VanDrie was already considering becoming a shareholder in Vion, now the veal group is making off with export slaughterhouse Gosschalk from Epe in Gelderland. This means that the wealthy calf integration is squeezing itself between pig-slaughterers in the Netherlands, putting the existing hierarchy on edge.

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De announcement of the acquired majority interest is a striking step. Both for Gosschalk and VanDrie. The Gosschalk family abandons autonomy within its company and brings in a dominant party. VanDrie, in turn, takes a step into the deep. After all, the slaughter and marketing of pig (meat) is a new branch of activity for the veal company.

Vion in the crosshairs
By the way, it is not the first time that VanDrie's name has been mentioned in the pig sector. In 2016, the company was considering joining Vion. They were approached by the ABN Amro bank for this, because Vion needed a capital injection at the time to be able to invest. As a meat stronghold, Van Drie seemed a logical partner. Although the step was seriously considered, the family business decided to decline the honor. Former spokesperson Henny Swinkels soberingly stated that Vion was a very big fish, but 'that a pig is something different from a calf'.

Now - about six years later - the company is taking the step, although Gosschalk cannot of course be compared to Vion in terms of size. This means Van Drie steps out of his comfort zone. After all, VanDrie is used to calling the shots and pushing the buttons in the veal market. This will not work on the pig market. Although Gosschalk is a renowned party, it is the smallest of the large slaughterhouses on the Dutch pig market, with around 50.000 slaughters (mainly pigs) per week when the slaughter line is running at full speed. 

Logical advantages
Yet the 'takeover' is not illogical for several reasons. Due to the nitrogen policy, the sword of Damocles hangs over Dutch livestock farming. Dairy companies therefore fear for their raw material position, but the number of calves is also at risk. Moreover, the move to pork broadens VanDrie's portfolio, which now mainly relies on veal. It can also be interesting in terms of economies of scale. Especially because VanDrie also has a minority interest in meat processor Zwanenberg. This was obtained when VanDrie transferred their majority stake in Struik Foods in Putten, known for its sausages and meal soups, to them in 2020.   

Last summer, Gosschalk joined forces with Farmers Defense Force (FDF) and the slaughterhouse committed itself to FarmerFriendly quality mark. The idea of ​​creating the first full chain integration with an open and transparent revenue model for pig farmers. With VanDrie's knowledge on board, this ambition has a greater chance of success, although the earning capacity of veal farmers has been under discussion for years. 

Relationships on edge
VanDrie's joining is an exciting affair for the existing slaughterhouse guild in our country. After all, the Van Drie family is wealthy and also enterprising in character. She probably has the power to do it somewhat gray image van Gosschalk, thereby increasing competition. This puts relations between the established order on edge, especially now that the number of pigs in the Netherlands is declining.

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