Westfleisch achieved a strong result despite the tight market in 2023. The company not only saw their turnover increase, but slaughtered as many pigs as in 2022 and even managed to attract more cattle.
In general, German slaughterhouses were in dire straits in 2023, but Westfleisch was much less affected this year. In total, the company's turnover increased last year to €3,35 billion, according to a company press release. In addition, the turnover of the convenience branch Westfalenland increased by 2,8% and sales of the sausage maker Gustoland increased by 9,3%.
Just like last year, the company slaughtered 6,5 million pigs. In the company's view, this is not a bad performance given the declining German slaughter figure. Due to an increase in the number of cattle slaughtered, the company also saw its market share increase in volumes. In 2022, the company slaughtered 362.000 cattle and calves. In 2023, the slaughter figure increased to 373.000 cattle and calves. Other slaughterhouses therefore chose to reduce their capacity. However, the slaughter figure remains significantly behind that of 2021. In that year, the company slaughtered 7,26 million pigs and 392.000 cattle.
Focus on costs and margins
Given the higher slaughter prices, higher energy costs and higher salaries, Westfleisch had to deal with significantly higher costs. The company expects wage costs to increase further in 2024, given last year's agreements with the unions. In addition, the company expects higher CO2 taxes and higher logistics costs.
That is why the company indicates that it keeps a close eye on costs and wants to focus on divisions with higher margins. The company gives little substance to this, but the company is probably referring to a stronger focus on convenience foods and other prepared products. In addition, the company announces investments in efficiency and plans to valorize more by-products itself.