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Analysis Pigs & Pork

Will Vion also reorganize in the Netherlands?

May 2, 2024 - By our team of market reporters

Vion is busy reorganizing in Germany, but the meat company is also considering similar plans in its own country. Due to the decreasing supply of pigs, it is reportedly being considered to reorganize the location in Boxtel or Apeldoorn, or possibly even to close it. The spokesperson for the meat company was not available for comment this morning, but the reports are being denied from within the organization.  

Messages circulating via Whatsapp, which appear to originate from within the organization, suggest that Vion is also going to reorganize in the Netherlands, or rather reorganize. Within the next three months, decisions on this matter are expected to be made by Vion's management. There seems to be active work behind the scenes on a restructuring plan. It is possible that this could lead to the closure of the location in Boxtel or Apeldoorn, as indicated. 

From a distance, these seem to be unlikely measures. After all, Boxtel is the main location where 18,000 to 20,000 pigs are slaughtered daily. The Apeldoorn location is also in good condition and is the cradle of organic slaughter. The Groenlo location is not mentioned. However, considering the current renovations taking place there, it makes sense. The Vion spokesperson was not available for comment this morning. Signals from within the organization suggest that the reports are inaccurate or exaggerated. 

The message states that Vion is currently facing a shortage of slaughter pigs to maintain the occupancy rate. Looking at the current slaughter figures of over 300,000 pigs per week in our country, this does not seem to be the case. This view is also not recognized by Vion's suppliers. They do mention that Vion is working on developing future scenarios, with a specific focus on animal numbers.  

Germany
Nevertheless, the rumors do have some substance. Earlier this year, Vion also launched a significant restructuring plan for the German market, in which no less than four of Vion's fifteen locations in Germany are to be sold or closed. It is noteworthy that reports about this had already surfaced at the time, but Vion had dismissed them as rumors. Later, it turned out to be true.

Regardless, there is certainly significant pressure on the management led by CEO Ronald Lotgerink to turn the tide. In both 2021 and 2022, the meat company reported substantial losses. The figures for 2023 have not yet been disclosed. Similar to last year, Vion is publishing later than in previous years, when the figures were often announced in March. Following the publication of the 2022 annual figures last summer, Lotgerink did mention that the upward trend had resumed.

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