Vion Food Group has successfully brokered a commercial agreement with Tönnies Group for the acquisition of the majority of Vion’s German beef operations.

This proposed transaction is a direct outcome of the German portfolio review initiated in January 2024 and signifies a strategic pivot towards focusing on the Benelux region. Subject to approval by the relevant competition authorities, alongside customary endorsements and closing conditions, the deal is anticipated to be finalised in 2025.

In the wake of a thorough review of its German portfolio, and following the divestments of the Landshut and Vilshofen facilities, Vion has further advanced its restructuring initiatives concerning its German assets, which encompass slaughtering, deboning, and by-products beef activities in southern Germany.

Under the terms of the proposed transaction, Tönnies Group is set to acquire Vion’s beef operations in Buchloe, Crailsheim (inclusive of pork activities), and Waldkraiburg. The acquisition also extends to the Hilden deboning facility, the hide processing plants of BestHides located in Memmingen and Eching-Weixerau, as well as the majority of Vion’s central support operations in Germany.

These South German beef operations are celebrated for their high-quality output and robust demand both domestically and on the international stage. The acquisition by Tönnies Group aims to ensure the continued prosperity and expansion of these vital activities, while preserving established supply chains and customer relationships.

Vion Food Group will maintain its stake in the Furth im Wald beef facility in South Germany. The remaining German entities under Vion’s umbrella will continue to receive full support, with all commercial relationships proceeding uninterrupted.

“This anticipated transaction marks a pivotal moment in Vion’s strategic realignment. We pledged to secure the most capable partners to guarantee a thriving future for the divested businesses, and simultaneously, we committed to increasing investments in our retained operations. Today, we take another step towards fulfilling these commitments. We are confident that Tönnies Group will deliver the necessary support and focus for sustained growth and success,” asserts Ronald Lotgerink, CEO of Vion.

Vion

 Prices

Deadweight pig prices in Ireland are holding relatively stable after increasing strongly from a low of 190c/kg in mid-February until early August. The average price paid for grade E pig prices in Ireland for the w/e 24 August 2024 was 231c/kg excluding Vat. The current Irish price is 6c/kg higher than the corresponding week last year

Throughput

While throughput has improved in the last quarter demand continues to run ahead of supplies. Total throughput YTD is 2,102,474 which is marginally behind the corresponding period in 2023. Throughput for week ending 24 August 2024, was 65,787 a marginal increase from the previous week

The latest available data from the CSO shows that Irish exports of primary pigmeat products were valued at €243 million, 2% higher than the corresponding period in 2023. A recovery in pig supplies for processing and a slight improvement in carcase weights have contributed to a similar 2% increase in export volumes during H1.

Within the H1 exports, there were notable increases in the value of trade to the UK (+16% to €71 million), and EU markets (+25% to €59 million). Meanwhile, there were declines in the value of Irish pigmeat exports to Asian markets (-15% to €77 million) and Oceania (-37% to €16 million).

Bord Bia

 

Cattle

The cattle market, although generally mixed, was still supported by a strong foundation this week. Yardings eased by 5,897 to 48,642 head, with year-to-date yardings 7% above current levels.

The Heavy Steer Indicator eased by 2¢ to 345¢/kg liveweight (lwt), and prices eased in NSW and Queensland while all other states experienced lifts. Yardings saw a lift of 133 head over the past week.

The Restocker Yearling Heifer Indicator lifted by 4¢ to 368¢/kg lwt. The highest prices were seen at Tamworth, Carcoar and Wagga which contributed to 13% of the indicator. At Wagga and Tamworth, increased interest for heifers is outpacing demand for steers in some cases. This increased demand for heifers for restocking or feedlots has pushed prices upwards.

Sheep

The sheep market has been generally positive except for the Mutton Indicator, which eased by 8¢. Both sheep and lamb yardings eased this week, totalling 13,237 head reduction in yardings.

The Trade Lamb Indicator lifted by 28¢ to 836¢/kg carcase weight (cwt), and prices lifted across most states except for WA. Yarding eased by 2,831 to 35,582 head. Forbes saw the highest trade lamb price at 873¢/kg cwt. However, most lambs at Forbes fell into the trade lamb categories with fewer heavy trade and heavy lambs available at market.

A lift of 45¢ was seen for the Restocker Lamb Indicator, totalling 632¢/kg cwt. Prices lifted in all states except NSW which eased by 19¢. Throughput in Wagga surged by 24,408 head, leading to 2.8 times more restocker lambs being sold. Despite this increase in supply, prices at Wagga lifted by 9¢. However, as the season progresses, lambs are trending lighter from both early weaning and the effects of a drier season.

Slaughter

Week ending 30 August

Cattle slaughter eased by 120 to 140,990 head. There were mixed results across the states, however small lifts were recorded in NSW, Queensland and WA. For the second week in a row Queensland achieved the largest weekly slaughter in four years at 75,201 head. Year-to-date, slaughter has lifted by 11% compared to 2023, indicating processing capacity strength.

Combined lamb and sheep slaughter lifted by 54,756 to 588,826 head. Sheep slaughter lifted by 38,094 to 180,753 head, with NSW seeing lifts of 25% and Victorian slaughter lifting by 26%. Lamb slaughter lifted by 16,662 to total 408,073 head. Lamb slaughter eased by 11,063 to 210,257 head in Victoria while SA experienced lifts in lamb slaughter by 24,434 head. Overall lamb slaughter has eased over August due to multiple processor shutdowns and fewer lambs available to market.

MLA

Australian farmers increasingly concerned about government policy

Australian Red Meat Exports Boom in UK since Free Trade Agreement

Smaller Abattoir Fund Grant Scheme

Closes Monday 30th September The Scheme The SAF grant scheme closes soon and we understand that many eligible abattoirs have yet to make an application. The scheme represents an excellent opportunity and can fund many types of capital investment at a 50% rate of grant and a maximum grant of £75,000. It is non-competitive and all eligible applications will be approved and funded. Eligibility The scheme is only open to applicants in England who are currently operational and have been invited to apply by the RPA. Eligibility is based on annual throughput of less than 10,000 livestock units (red meat) or 500,000 poultry birds in the reference year of 2022. The abattoir must not carry out or intend to carry out non-stun slaughter (for a five year period post the grant agreement). Application Process The application requires business details, project details, quotes and, where applicable, evidence of planning consent of the businesses match funding. Assistance Westley have assisted a number of members with their applications so far and are available to help any others that require support. This can be in three ways: Advising on the application requirements, drafting the application forms, collating the accompanying documents (to be provided by the business) and preparing the application so the applicant simply has to just review and forward an email to submit the application. We are offering this for a fixed fee of £350.  Obtaining quotes for items of equipment or, perhaps, obtaining second and third quotes where you only have one. This would be chargeable at an hourly rate. We can also provide a full project management service for any construction projects (e.g. new chillers, extensions etc.). This starts with the project concept and moves through feasibility, design, tendering, contracting, construction and handover. We would quote for this on a project specific basis. Please contact us if you need assistance: Westley Consulting 01630 672400 or [email protected] Alastair Beacon on 07968 585101 or [email protected] Rick Patterson on 07852 777668 or [email protected]

Cattle market

The cattle market was mixed this week, with increases in the Heavy Steer and Processor Cow indicators. Yardings eased for most indicators except for the Feeder Steer and Restocker Yearling Steer, which lifted by 3,046 to 53,855 head.

The Feeder Steer Indicator eased by 9¢ to 681¢/kg liveweight (lwt), with yardings lifting by 37%. At Gunnedah, heavy feeder steers experienced a firm market, but due to quality-related changes, prices were mixed. At Wagga, heavy feeder steers were scarce, causing fewer buyers to bid strongly.

The Restocker Yearling Steer Indicator eased by 10¢ to 365¢/kg lwt. Positive pricing in NSW was supported by wet weather. At Tamworth, prices lifted by 32¢, motivated by strong restocker demand as we head into spring. In Queensland, due to mixed quality and conditions, prices eased by 14¢.

Sheep market

The sheep market has been generally positive this week for all indicators. The ease in yardings was largely driven by a reduction in lamb yardings by 9,145 head.

The Light Lamb Indicator lifted by 19¢ to 662¢/kg carcase weight (cwt), with yardings remaining relatively stable. Prices in most states eased, however NSW prices lifted by 33¢. Supply is tight in key saleyards as some lambs struggled to meet a fat score 2, making them cheaper compared to heavier weights.

The Restocker Lamb Indicator eased by 5¢ to 585¢/kg cwt, with mixed prices across states. A lift of 40¢ to 753¢/kg cwt occurred in NSW, while Victoria eased 54¢ to 444¢/kg cwt. In Victoria, the quality of supply has declined, with more secondary plainer lambs entering the market, resulting in throughput halving.

Slaughter

Week ending 23 August

Cattle slaughter lifted by 7,087 to 141,110 head. Throughout most states except Queensland, there was an ease in slaughter. Queensland slaughter lifted by 14% to 74,974 head, marking the largest weekly Queensland slaughter in the last four years. Weekly slaughter in 2024 continues to track 16% above 2023 slaughter indicating strong processing capacity.

Sheep and lamb slaughter eased by 33,771 to 534,070 head, notably from reductions in lamb slaughter from 21,741 to 391,411 head. This ease in lamb slaughter has been due to multiple processor shutdowns in SA. NSW lamb slaughter eased by 3,308 head a 16% decline compared to a year ago, while sheep slaughter eased by 12,030 to 142,659 head. Victorian slaughter eased by 16,305 head, a 31% drop from last week. There were moderate lifts in slaughter seen in NSW, Tasmania and WA.

MLA

 

The UK has secured the sixth and final ratification required to trigger our accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) before the end of this year.

CPTPP is a free trade area spanning five continents and almost 600 million people once the UK joins. Following Peru’s ratification of our deal to join the bloc, the agreement will now officially enter into force by 15 December 2024.

More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect, helping businesses export more to CPTPP markets and contributing to the government’s priority of driving economic growth. By 2040, the agreement could boost the UK economy by around £2 billion annually.

Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will come into force with those members by 15 December, and subsequently with other members as they ratify. We continue to work closely with the remaining member countries who are in the process of ratifying the deal.

As the first country to accede to this agreement the UK will be well positioned to shape its future development, from influencing the development of the CPTPP rulebook to championing the group’s expansion to new economies.

Gov.uk

Makro, a leading wholesale supermarket chain where anyone can shop at more convenient prices, has announced its decision to leave crisis-ridden Argentina after some 30 years in the South American country where sales keep plunging despite President Javier Milei’s administration successful narrative.

According to the consulting firm Scientia, the wholesale sector faced an 18.8% drop in sales in August alone.

The company reportedly put up all its 24 branches in 10 territories for sale. Makro had already reduced its development in other countries in the region such as Brazil, Peru, and Venezuela. Owned by the Dutch group HSV, Makro entrusted Banco Santander with the liquidation procedures, it was also reported.

Although Makro denied the move, negotiations were said to be underway with potential buyers, some of them already involved in the wholesale and supermarket business. Makro’s assets are believed to be worth around US$ 200 million. Makro had landed in Argentina in 1988 through Colombian-born businessman and former Congressman Francisco de Narváez, then owner of the now-defunct Tía chain.

MercoPress

 

Cattle market

The cattle market was generally positive this week despite a 14¢ decline in heavy steer prices. Yardings eased once again, totalling 48,488 head.

The National Young Cattle Indicator lifted 14¢ to 357¢/kg liveweight (lwt). This is the second-highest price this year, behind the peak in February. A large portion of supply was coming through NSW online sales, which made up 23% of the indicator throughput. NSW online sales took over Roma and Queensland online sales, reflecting a slowdown in Queensland supply (though recent rain across the state lifted restocker enthusiasm).

The Heavy Steer Indicator fell back 14¢ to 345¢/kg lwt, opening the gap between processor-ready steers, trade feeders and restockers. The restocker market was driven by Queensland regarding throughput. Rain across NSW led to stronger restocker steer prices, particularly in Wagga Wagga. The Restocker Steer Indicator lifted 8¢ to 375¢, while the Heifer Indicator was the week’s highest performer, lifting 12¢ to 298¢/kg lwt.

Sheep market

The sheep market was poorer this week, as yardings eased 15% to 246,111 head, with an 11% dip in sheep (78,071) and a 16% dip in lamb yardings (168,040).

The Mutton Indicator eased 11¢ to 362¢/kg carcase weight (cwt), however was the least impacted by the decline in yardings. The declines were largely due to mixed quality of mutton offered to larger buyer markers, especially across NSW, softening $7–$21 in a usually strong Wagga market, and $10–$20 in Bendigo.

The Heavy Lamb Indicator was the best performer – while also being less affected by hits to yardings. The indicator lifted 7¢ to 819¢/kg cwt. Exporters were present across major markets and quality was the driver across NSW – lambs above 30kg drove the excitement, with good lines of grain-assisted stock hitting markets, some tipping $300/head.

Slaughter

Week ending 16 August 2024

Cattle slaughter eased slightly on the previous week, easing by 4,000 head (3%) to 134,023 processed over the week, remaining above the weekly average for 2024.

The most significant change across states was in WA, with slaughter lifting 33% to 3,539 head, their highest since March of this year. Slaughter also lifted 6% in Tasmania to 4,448 and 3% in NSW to 34,993 head. Eases were seen in all other states, starting at Victoria by 1% to 21,959 after the historic highs of previous weeks. SA slaughter dropped by 2% to 3,280, and Queensland (which drove the national dip) falling by 8% to 65,864, their lowest throughput since May.

Lamb slaughter eased 4% to 413,152 processed over the week. Despite lifts in NSW (1% to total 117,392) and Queensland (4% lift totalling 1,477), all other states experienced declines. Sheep slaughter lifted 6% to 154,689 head processed over the week. This was buoyed by a 16% lift in NSW to 63,578. Despite the lift, it is still below the weekly average for 2024.

Combined slaughter remained flat, falling by only 1% to 567,841. Tasmania and SA each fell 10% and 20% respectively to 8,283 and 22,044 mainly due to maintenance closures, while Victoria eased 4% to 269,824. Lifts between 1%–6% were seen across other states; WA (85,228), Queensland (1,492), and NSW (180,970).

MLA

See also:

Australian Red Meat Exports Boom in UK since Free Trade Agreement

MercoPress