NETHERLANDS – Boxtel-based meat processor, Vion Food Group, has embarked on organizational restructuring in a bid to stimulate sustainable growth.

According to the privately-owned business, the changes will accelerate the company’s supply chain strategy, promote innovation, and strengthen the company’s leading position in the European food industry.

“We are going to set up two geographical units- one for Germany and the other for our operations in the Benelux market; the changes made will enable improved efficiency and strengthen ties between farmers and customers in those markets,” the company said in a statement.

“The two units will oversee the purchase of livestock, and on-site activities such as slaughtering, boning, processing, packaging, and the sale of meat.”

To lead the changes, Vion has set up a new executive committee, headed by CEO Ronald Lotgerink and CFO Tjarda Klimp.

The committee will also comprise Philippe Thomas the executive responsible for Vion’s business in Germany; Leon Cuypers, who leads its operations in the Benelux; Simon Morris, who heads the company’s food service across markets; chief transformation officer Mattijn Bak and chief HR officer.

The company also revealed that it was previously divided into four business units, namely “pork”, “beef”, “foodservice” and “retail”.

These units provided pork, beef, meat products, plant-based alternatives, and by-products for retail, food service, and the meat processing industry.

Recently, the Dutch meat processor announced its plans to close its beef plant in Bad Bramstedt, Germany.

According to Vion, the plant closure was due to the declining cattle population in northern Germany, the overcapacity of the slaughterhouse market, and the general pressure that the German protein market is under, partly because of the social trend towards less meat consumption.

Since 2012, the company has adjusted capacities at the Bad Bramstedt site to consider the progressive decline in cattle numbers in northern Germany.

“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.”

In Vion’s industry report, the company generated revenue of €4.6bn (US$4.95bn) in its 2021 financial year, down 6.1% from a year earlier. Vion booked an annual loss of €29m in the 2021 fiscal period, after making a €53m profit in 2020.

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