Germany – Dutch meat producer Vion food group has announced its plans to close its Großostheim-based production facility in Bavaria, Germany, affecting 220 jobs.
According to the group, the facility closure, scheduled by the end of the year, is attributed to the facility’s lack of sufficient growth.
It revealed that the move is part of a series of structural changes within the company, with the recent announcement of a reduction in capacity for pig farming under the voluntary Initiative Tierwohl (ITW) quality assurance scheme.
In addition, the company noted that it would also not renew some existing ITW contracts with farmers at the end of the year, impacting suppliers at the Vilshofen and Landshut sites.
“The strategic decisions are a response to the challenging meat market situation in Germany, coupled with reduced demand for animals farmed under the ITW scheme,” Vion said.
“However, there remains interest in additional pigs farmed under our QS quality scheme for food, ensuring the safety of fresh food in Germany.”
Philippe Thomas, the newly appointed CEO for Vion in Germany, emphasized that the company is undergoing a significant transformation impacting the entire meat manufacturing and processing sector.
He highlighted the importance of adaptability in an evolving industry noting that the German meat market has been grappling with declining meat consumption, hitting its lowest levels in over 30 years in 2022.
“While Vion’s convenience and self-service goods business faced challenges this year, its food service site in Großostheim, which produces burgers, finger food, and vegetarian and vegan products, has remained profitable,” he highlighted.
Earlier this year, Vion also announced the closure of its German beef plant in Bad Bramstedt, which affected 250 employees.
Vion’s CEO, Ronald Lotgerink, stated that the plant closure was part of the company’s effort to balance supply and demand in a market under pressure, addressing factors like the declining cattle population, overcapacity of the slaughterhouse market, and shifting social trends toward reduced meat consumption.
However, he revealed that the group is actively exploring options for the transfer of around 250 at-risk employees to other Vion locations in the country.
Vion had previously adjusted capacities at the Bad Bramstedt site since 2012 in response to the dwindling cattle numbers in northern Germany.
Additionally, Vion previously closed its Zeven slaughterhouse in the Lower Saxony region, citing its inability to operate profitably in the future.
The company is now focusing on its Emstek facility, approximately 100 kilometres west of Zeven, to tap into global market opportunities in the evolving pork meat market.
Vion Food Group operates internationally with 25 production sites across the Netherlands and Germany.
