Balance China brings Tönnies strong growth

by Editor fleischwirtschaft.com
Monday, March 09, 2020
The shareholders Clemens and Maximilian Tönnies as well as managing director Andreas Ruff want to further internationalize the group.
Photo: Tönnies
The shareholders Clemens and Maximilian Tönnies as well as managing director Andreas Ruff want to further internationalize the group.

The strong demand in Asia and rising prices on the world market will give Germany's largest slaughterhouse group an almost double-digit increase in turnover in 2019.

The Tönnies Group of companies achieved an annual turnover of around €7.3 bn. in 2019, 9.8% more than in the previous year. In 2018 the meat group had still had to accept a decline of 3.6% to €6.65 bn. No information was given on the company's profit.

Once again it was the prices on the pork market that had a decisive influence on sales. "Last year, we experienced an international market rally like no other," is how managing partner Clemens Tönnies sums up 2019. "An economically challenging first half of the year was followed by decent market growth from autumn 2019 onwards", Tönnies continues.

In 2020 he expects a further growth in revenues. "We have seen the markets as very stable for a long time. The demand for quality meat from Asia, especially from China, is shaping volumes and prices positively. But the German market remains our first priority," adds Maximilian Tönnies.

The Group states the number of pigs slaughtered as in 2018 at 20.8 mill. head. Of these, 16.7 mill. (+0.5%) were slaughtered in Germany. The number of slaughtered cattle also remains unchanged at 440,000. In the cattle division, the focus is on the restructuring of the Badbergen site, which Tönnies took over from the insolvent Lutz Group in 2017. Following the investment of around €80 mill. in Badbergen, the company will start operating the new site from mid-2020.

The international expansion plans are now focused on China. For the announced joint venture, Tönnies is in intensive coordination with the partner. "We are continuing to work at full speed. But we are also taking the necessary time in the preliminary planning and discussions with our partner, the Chinese Dekon Group," announces Managing Director Andres Ruff. Despite the problems caused by the corona epidemic, the ground-breaking ceremony is expected to take place this year. 

 

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