BOXTEL, NETHERLANDS – Vion Food Group, a Dutch meat processor, announced on Jan. 16 that it was reviewing its operations in Germany, which included divestments in some plants.

Vion stated plans to sell its beef plant, pre-packaged facility in Altenburg, and its Ahlener Fleischhandel ham specialist to Tönnies Group.

The company also announced that it would be selling its pork plant in Perleberg to Uhlen GmbH.

Vion noted that the transactions are subject to regulatory approval and certain closing conditions. The deals are expected to be finished in the first quarter of 2024. Approximately 700 employees will be transferred to the respective purchasing sides when completed.

In another announcement, Vion stated that after looking for a buyer for its Emstek pig facility it will close the location by the end of March 2024 at the latest. The company said this would impact approximately 750 employees.

“The intended steps in Germany hold significant implications for our employees, customers, suppliers and business relationships,” said Ronald Lotgerink, chief executive officer of Vion Food Group. “We therefore carefully considered the changes to make our operations more efficient and flexible on our journey towards a future-proof organization. We stay dedicated to building sustainable supply chains that connect farmers, customers and partners.”

One of the factors for this decision, according to Vion, is the pork sector in northern Germany undergoing a restructuring to address overcapacities and manage livestock densities. The company said the beef sector is facing a similar situation with annual decline in production.

Challenges and shifts in the European meat industry remain top of mind for Vion and other processors.

“European meat companies, especially in Germany, are facing severe competition from the USA, South America, and China on the global market,” the company said. “The outbreak of African swine fever (ASF) has not only led to the loss of significant export opportunities but has also intensified pressure on German meat companies. In response, the industry is focusing more on the domestic market, moving towards self-sufficiency.”