Navigating a turbulent market

Max Nales follows global market developments every day. As Director Sales at Vion Food International, responsible for eleven sales offices across Europe and Asia, he sees the impact of geopolitical developments directly reflected in the market. His view is realistic, but not pessimistic.

A market under pressure
Military conflicts and trade tariffs from China and the United States are driving up costs on several fronts. From freight and road transport to energy and packaging, costs have risen across the board and are affecting the entire supply chain. For buyers, higher invoice prices are not simply a commercial choice. They are a direct reflection of what is happening in the world today. “In many ways, we are all in the same boat”, says Max. “Consumers are dealing with inflation, high energy prices and high interest rates. You can see that reflected in demand.”

African swine fever
Another disruptive factor is the continued spread of African swine fever across Europe. Last autumn, the virus also reached Spain, Europe’s largest pork producer. As a result, Spain was only able to export to markets outside Europe to a limited extent, which led to an oversupply of pork on the European market. The result was a sharp drop in European pig prices. “That has been a tough blow for farmers”, says Max.

Signs of recovery
Still, Max also sees reasons for cautious optimism. Following the outbreak of African swine fever, Spain is slowly being allowed to export again to several markets outside Europe, which is easing some of the pressure on the European market. The tourist season in Southern Europe is also approaching, which normally creates additional sales opportunities. And a possible de-escalation in the Middle East could help trade flows return to more normal levels. “Everyone benefits from stability”, says Max. The entire European pork sector has an interest in preventing further market decline, and Max remains hopeful.

A strong network makes the difference
Despite the turbulent market, Vion remains able to sell meat around the world as effectively as possible. “We owe that to the long-standing relationships we have built and the strength of our international network”, says Max. “In times like these, you realise just how valuable mutual trust really is.”