HKFoods to shut down Paimio slaughterhouse in cost-cutting measure
The Finnish meat producer is closing its facility in Paimio and shifting operations to an external service provider. The move is expected to save US$1.1 million annually.
FINLAND – HKFoods, a meat products company, has announced that it will shut down its Paimion Teurastamo Oy slaughterhouse in Paimio, Finland, as part of efforts to reduce costs and improve efficiency.
Operations at the facility will cease on March 31, 2025, with cattle and sow slaughtering shifting to Liha Hietanen Oy, a company based in Sastamala.
By outsourcing these operations, HKFoods expects to achieve annual savings of approximately US$1.1 million (€1 million), with financial gains beginning in the second quarter of 2025 and extending into 2026.
The closure will impact 21 employees, and HKFoods is working on reassigning them to other roles within the company.
Industry challenges and rationale
The decision follows a steady decline in Finland’s cattle population, particularly within dairy farming. In May 2023, the country recorded around 820,700 cattle, marking a 2% drop from the previous year.
The shrinking cattle numbers have increased production costs and reduced efficiency in beef and pork processing.
Meanwhile, Finland’s overall meat supply has grown at an annual rate of 0.4% since 1966, according to EUROSTAT. Poultry production alone reached 143,580 tonnes in December 2023, further shifting the country’s meat industry landscape.
HKFoods CEO Juha Ruohola stated that the company is focused on maintaining domestic beef production while improving efficiency in the pork supply chain, particularly in sow slaughtering.
“With this decision, we are securing the cost-effectiveness and competitiveness of our food chain, ensuring that Finnish food production remains viable amid growing international competition,” Ruohola said.
“Domestic food production is essential for all Finns, as it contributes to food security and supply stability.”
HKFoods and its brands
HKFoods, based in Turku, Finland, produces a variety of meat products and ready meals. The company operates several brands, including HK, which offers beef, pork, ready meals, and salads. One of its most recognized products is Sininen Lenkki, a budget-friendly mixed-meat sausage.
Other brands under HKFoods include Kariniemen, which specializes in chicken products, Popsi, known for sausages and knackwursts, and Via, a gourmet product line developed by TV chef Jyrki Sukula.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
