German meat processing machinery sector fell slightly
2020 has signaled a drop in revenue for many meat processing and packaging producers in Germany. According to the German Food Packaging and Processing Machinery Association (VDMA) data, the production reached €1.2 billion, with a 9% drop in the domestic market, totaling €13.9 billion, and export figures going down 5% from the previous year.
"The negative data in production is not a surprise, because 2019 was an extraordinarily strong year for our industry. Even without the corona pandemic, we would probably only have matched the level," commented Richard Clemens, VDMA's Managing Director.
From a regional perspective, foreign food and packaging machine deliveries collapsed in almost all economic regions in 2020. North America was the exception with positive development. German deliveries, particularly to the US, increased by 8% to more than €1.2 billion. There were also positive impulses from important individual markets such as Russia, Mexico and China. Deliveries to the EU-27, the most important sales region, fell by 15%. Overall, exports to Asia also fell significantly by double digits.
Based on current estimates, it is unlikely to return to the 2019 level in 2021. "We are anticipating production growth this year, but it will probably not be in the double digits," Clemens said.
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