General company information

❖ Foundation: Vion N.V.: 1934

❖ Employees: 12.445 (2019) --> ¾ in pig sectora

❖  Turnover: 5,1 billion Euro (2019)

      ➢ +8,4% than in 2018

      ➢ Net profit: 26,7 Mio. Euro

      ➢ Pig: 3 billion Euro net turnovers

❖ Slaughtered pigs: 15,2 Mio. (2019)

❖ Headquarters:

      ➢ Netherlands: Boxtel

      ➢ Germany: Buchloe (Bavaria)

❖ 11 own brands and supply chain concepts

❖ Export to Europe, Asia, Oceania and North America

      ➢ 83% to all European countries, 40% to Germany, 14% to Asia

❖ Sales offices in further 13 countries (most European)

 

Product portfolio

❖ 4 dimensions: Pork, Beef, Food Service and Retail

❖ Slaughtering and butchering of pigs and cows

❖ Production of by-products for retailers and meat processing industries

❖ Production and sales of fresh meat

      ➢ Processing of fresh meat to work in progress products as well as end products

 

Supply Chain

❖ Long-term business relationships with farmers, logistic partners and customers

      ➢ Quantity of livestock retailers gets less, quantity of animals is constant

❖ Different programs for long-term relationships of farmers (e.g. Good Farming Balance)

 

Market concept: Good Farming Balance

❖ Reaction on specific international market requirements

      ➢ Strong cooperation of Vion with farmers and therefore demand-orientated supply chains

      ➢ Production of high-quality meat due to customer demands in needed quantity, which isrequired by the specific market

      ➢ Diversity is enables by supply modules

           1. Basic

           2. Wide (wide supply process)

           3. Robust (more mature pigs with thicker layer of

      ➢ Three rpicing systems:

           4.Weekly price (based on supply and demand and varies weekly)

           5.Vion price index guarantees (average price based on a combination of representative international prices)

           6.Vio-n long-term price (price of the pork is fixed for a longer period (at least 13 weeks)

 

Strategy: Building Balanced Chains (BBC)

New business  strategy, developed in 2019

❖ From supply- to a demand-orientated business model

❖ Optimization of agricultural holding

❖ Specialization on products: unique concepts and product innovations which cover latest trends of consumers

❖ Based on modern IT-systems in which all partners of the supply chain are connected (producer forage to consumer)

❖ Meat consumption is retrogressive: quality is required → different breeds, more sustainability

      ➢ Start-Up was founded (ME-AT)

 

Challanges

❖ Decreasing amount of animals for slaughter

❖ Decreasing meat consumption in Germany & Europe

❖ Implementation of new business strategy BBC

 

Slaugtherhouses in Gemany

❖ Emstek: one of the most important European area of production for pork, average distance stable to Vion: 50 km, 60.000 pigs/week, focus on export → China license

❖ Crailsheim: pigs and cows, more than 50% of fresh meat is sold to local butcheries, caterings and meat processing industries, average distance stable to Vion: approx. 80 km, 21.000 pics/week, Export (27%): pork belly to Korea, back bacon to Japan

❖ Perleberg: biggest pork supplier/marketer in province of Brandenburg, very modern production → high flexibility to manage (inter-)national market, approx. 20.000 pig/week

❖ Landshut: high investments were made (e.g. rebuilding of anaesthesia facility, expansion of slaughter lines and cool  stores, new plant for butchering was created) for gaining quality and animal welfare (in cooperation with producer group South-Bavaria), 21.000 pics/week, average distance stable

❖ Vilshofen: biggest slaughterhouse in Bavaria, delivery to local butcheries and retailers, big investments and refurbishment of facility, 20.000 pics/week, export of carcass: Italia

 

→ Two facilities in Germany have china license, next to Emstek are no further information found.