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Vion wants to adjust production capacities in Germany

Boxtel, 25 May 2023 – As of 31 July this year, Vion Food Group plans to close its operation in Bad Bramstedt. Approximately 250 employees work at the northernmost German beef slaughterhouse of Vion. The company will negotiate a social plan with the works council.

Declining livestock

The cattle population in northern Germany, which has been declining for years, as well as the overcapacities on the slaughterhouse market make a further step in the consolidation of the slaughterhouse landscape necessary. Vion, the largest beef producer in Germany, is therefore planning to close its northernmost beef slaughterhouse by the end of July 2023.

Since 2012, Vion has continuously adjusted capacities at the Bad Bramstedt site to the progressive decline in cattle numbers in northern Germany. The planned closure is a consequence of the current market situation, inflation and high prices and the general social trend towards less meat consumption. The company’s subsidiary Vion Zucht- und Nutzvieh GmbH is not affected by the closure. In the interest of its farmers to keep the transport routes for the slaughter cattle short in the future, and in the interest of animal welfare, Vion will explore the offer of the still sufficiently available slaughter capacities in the north in the coming weeks.

For the 250 employees, Vion will look at possible transfers of jobs to other Vion locations in Germany.

German market under pressure

“The planned closure is part of the adjustment at our German sites to rebalance supply and demand in the German market, which is under pressure,” said Vion CEO Ronald Lotgerink. “In the face of inflation and price increases, societal developments and regulations that the farming and meat industry is currently facing, we are taking measures to keep meat production in Germany healthy and to offer farmers future perspectives.”

Landshut as regional branch in future

During the spring months Vion transferred the deboning operations from the pig slaughterhouse in Landshut to Vilshofen and Crailsheim. In the continuation of this step, Vion continues to rely on the close strategic partnership with EG S├╝dbayern in the south of Germany. In this sense, the Vion site in Landshut will in future first and foremost map the regional business and the Crailsheim and Vilshofen sites will become central hubs for the pork activities in southern Germany.

Vion will provide further details on the realignment with the upcoming publication of its annual report.