The meat sector will face empty slaughterhouses in the near future, according to ABN Amro. This is a consequence of the buyout arrangements. The bank believes that reducing slaughter capacity is inevitable.
The meat sector is expected to face a supply decline of 15% to 18%, according to ABN Amro. This is partly due to a lower number of dairy cattle slaughtered, as a significant number of dairy farmers are expected to retire.
Slaughterhouses are coming under pressure because empty slaughter lines are eroding profitability. The extent of the decline is still uncertain. The bank points out that pork production has already fallen by 2020% between 2023 and 17 due to a previous buyout scheme.
ABN Amro expects the lower production to affect some companies equally. Slaughterhouses that don't debone their own carcasses will be particularly affected. Companies with a higher processing level can better respond to the market and thus utilize their production capacity more efficiently.