EXCLUSIVE: Vion looks for new markets to sell all of what pigs offer
"What we are interested in, and that's a kind of success story we want to achieve, is improving the supply chain when it comes to the efficiency and usage of the raw material. We need to use all the parts of the animal. And that's why we, of course, try to enter new markets," said Mr. van Leeuwen.
Vion's sales director says that the company wants to balance the pork and beef carcasses and that there are a lot of interesting markets for the company's wide range of products based on the remaining raw materials from the animals. Normally, from an average pig of 119 kilograms 55 kilograms of meat is produced, whereas, in the case of an average bovine of 575 kilograms, 195 kilograms of meat would result.
Depending on food preferences and culture, some countries have a higher demand for the more unusual parts of the animals, which are not consumed in Western Europe. Amongst others, because it is important to balance the animal, these are the markets that Vion is targeting.
In 2016, Vion has invested in whole carcass use to obtain an optimal added value from each individual carcass and the company plans to continue on this path in 2017.
According to Mr. van Leeuwen, in particular, the Far East market is interesting for the company's plans to reduce food waste.
"We need the Far East for that. But the continent is also an interesting market because the standard of living for the Asian people is increasing, so we see a great potential there. Besides that, we are also interested in Eastern Europe, where the standard of living is also on the rise. It would be very important for us to gain access to these markets," Mr. van Leeuwen added. "It's not that one market is more important than the other market. All the clients are important, but for different products."
Still, the Vion official considers that to enter major markets, such as China, with products made from raw materials of the animals, is a considerable challenge for the company and a complex process. "We need qualifications for our sites to get permission to enter a market and to export."
In the case of the Chinese market, Vion received certification from the Chinese authorities for its Dutch facilities in Boxtel, Apeldoorn, Scherpenzeel and Groenlo, and for its German plants in Perleberg and Emstek.
Vion has a very long tradition of export to the Far East. It has delivered meat to Japan and Korea for over 25 years.
Mr. van Leeuwen says that markets from the Far East are vital for the company, considering that this region is developing faster than any other in the world.
The effects of the Russian embargo on Vion
Mr. van Leeuwen talked about Vion’s strategy when crises such as the Russian embargo appear.
"We used to ship a lot of pork to Russia. And then, from one day to another it was over. The problem was that we were shipping very particular products to this country. And when the Russian embargo was imposed, we had to look for alternatives. And of course, in the beginning, the alternative was lower in price than the original situation in the Russian market, but gradually we managed to increase the prices," the Vion sales director explained.
Mr. van Leeuwen added that at the time when the Russian embargo was imposed, the company decided that it does not want to be too much dependent on one country.
Next in line: India and Mexico
“We are looking for new opportunities around the world. We are already looking into the market from India, but we are also interested in the Southern American market which is now opening up for the EU. There are opportunities there. Mexico, for example, is a very potential market for us, considering that they are number 3 in worldwide pork imports, after China and Japan,” said the Vion representative.
Mr. van Leeuwen concluded that it is not easy to enter a new market and there are a lot of challenges, but once a company manages to enter a market then its presence there is assured.
Mexico produces large volumes of pork, but the climatic conditions of the country are far less favorable than in central Europe. An analysis of international pork imports puts Mexico in third place in 2016, with 1.10 million metric tons.
Vion is an international meat producer with production locations in the Netherlands and Germany and sales support offices in 16 countries. The company provides fresh pork and beef, and by-products for retail, foodservice and the meat processing industry.
In 2016, Vion reported a net turnover of 4.7 billion euro and had 11,507 employees. It’s facilities processed 309,808 pigs per week and 17,712 cattle per week. Vion holds 17 production sites for the Pork division, 11 production sites for the Beef division and 2 for the Food Service division, with 25 production sites being located in the Netherlands and Germany and 16 support offices in various European countries, China and Singapore.
Photo Caption: Sjoerd van Leeuwen, Vion sales director Pork, and Oana Coman, Sales Director at Vion Romania
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