Tonnies reports good results in France, Poland and the UK
Last year, Tonnies Group had to adapt its growth strategy to face the challenges posed by the pressure of global competition for the entire German meat industry. Countries such as Spain or the USA are flooding the international market with cheaply produced goods without comparable standards, for example in farming and animal welfare, according to a press release.
The company maintained its position with a total of 20.8 million processed pigs worldwide (+1%, 2017: 20.6 million) of which 16.6 million were in Germany (+/- 0%). In total the German market has reduced by 2.5%. In the beef sector, Tonnies processed and butchered a total of 440,000 cattle in 2018 (+2%, 2017: 432,000). Due to the weak prices for pork, which were 12.5% lower than in the previous year, with 6.65 billion Euro, group sales were 3.6% lower than in the previous year.
"In a very heterogeneous German meat market, Tonnies has good growth in the beef and pork sector. Overall, we are the driver for sustainable development in order to meet consumer demands", says Andres Ruff, Manager of Tonnies Holding. New location developed in Landsberg am Lech is used to produce for retail food trade brands on the basis of traditional recipes and innovative technologies. Also, new Bavarian brands such as Lechtaler Original have bee brought to the national market, mentioned Ruff.
The new strategy implemented by the company facilitated good results for the subsidiaries in France, Poland and the UK. We are growing in France and Poland and are the segment market leader in the UK. In Denmark, an economic turnaround was achieved in 2018, so that after the takeover of Tican we have had a very positive development", added Andres Ruff.
Tönnies is a multi-level company with business activities in the food industry around the world. The eight business sectors are Meat-Pork, Meat-Beef, Convenience, Sausages, Ingredients, Logistics, International as well as Central Services.