Vion Food Group to sell its livestock trading business in Neumünster to ZNVG eG
GERMANY – Vion Food Group is in the process of selling its cattle marketing operations in Neumünster to the livestock marketing association ZNVG eG.
Both companies have signed an agreement, which is still subject to the usual closing conditions, and the transaction is expected to be finalized by March.
The Neumünster site is currently part of Vion Zucht- und Nutzvieh (ZuN), a subsidiary of Vion that will retain ownership of its other locations.
With this sale, nine employees from the Neumünster site will move to ZNVG, which is the largest cattle and pig trading organization in Schleswig-Holstein.
Vion had already transferred its pig collection and marketing activities in Neumünster to ZNVG at the start of 2022.
Philippe Thomas, COO of Vion Food Group Germany, stated that the company is confident ZNVG will provide stability for the employees and continue working closely with independent shop stewards.
ZNVG Managing Director Astrid Seidel said that this move strengthens the organization’s livestock collection and marketing network in Schleswig-Holstein and that they look forward to collaborating with new colleagues and traders.
A hard financial year for Vion
This sale comes a few months after Vion reported a net loss for the last financial year, primarily due to impairments following its decision to exit the German market.
The Netherlands-based meat processor recorded a loss of US$97.1 million, a sharp contrast to the US$116.4 million profit it had posted the previous year.
Despite the financial setback, the company has started to see cost reductions from a transformation program launched in 2023.
The restructuring is part of Vion’s strategy to shift its focus to the Benelux region.
As part of this transition, the company has already sold several of its processing facilities in Germany.
These sales contributed to an impairment charge of US$40.9 million last year, in addition to the US$62.7 million recorded in 2022.
In its latest annual report, Vion stated that its restructuring efforts, referred to as the “Change that Matters” program, are on track for full implementation by 2025.
Although the transformation costs weighed on the company’s net results last year, Vion reported that it achieved US$97 million in savings over the same period.
The company, which is headquartered in Boxtel, releases its financial results annually.
Management has confirmed that the divestment of its German operations remains on schedule for completion by 2025.
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