Bucking the market trend

The turnover from the now fully consolidated Zur Mühlen Group, which was included for the first time, had a special effect. Despite the difficult market environment, the corporation operated successfully in 2017: the number of pigs and beef cattle slaughtered and butchered by Tönnies increased once again in comparison to the previous year.

Important production locations were further developed (particularly in Badbergen and Kellinghusen) and the sites belonging to the Zur Mühlen Group were decisively strengthened through acquisitions and restructuring measures.

In 2017, the group slaughtered 20.6 mill. pigs (2016: 20.4 mill.) – an increase of 1%. Of these, 16.6 mill. pigs were slaughtered in Germany. This corresponds to an increase of 400,000, an increase of 2.5% (2016: 16.2 mill.). Tönnies also slaughtered more beef cattle in 2017: 432,000 animals were slaughtered and butchered (2016: 424,000). The small increase in the number of pigs slaughtered outside of Germany can be attributed to weakness in the Danish market. The slaughter output decreased by about 5% overall – Tönnies was also stronger here. The export share was about 50%.

Tönnies considers itself well-positioned for the current business year and medium-term development. “We are experiencing stable growth – contrary to the market trend. I feel confident about the future, despite the fact that price pressure and competition have intensified significantly in recent months,” says Andres Ruff, Managing Director of the Tönnies holding company. “We wish to build on these positive developments.” he added.

Over the past few months, the holding company’s newly appointed management team has focussed on corporate strategy. In the current business year, they will concentrate specifically on internationalisation, cost consolidation, and sustainability.

Responsibilities within the corporation have been reassigned to implement this strategic focus. Holding company managing directors Clemens Tönnies and Andres Ruff bear overall responsibility for group operations. Frank Duffe will assume a key role to facilitate successful implementation of the internationalisation strategy. He will be responsible for Great Britain, Denmark, Spain, and Poland as well as for all Ingredients and Pet Food matters. Karl-Heinz Schlegel, who previously headed the Convenience division, will take over the Meat (Germany) division, with responsibility for pigs and beef cattle. Jörn Evers, who was the sales director for the Convenience division, will take charge of the Convenience division. “We are confident that this will help to create the conditions for our future success,” says Clemens Tönnies.

One important focus is also on the company’s sustainability strategy, which is currently being further developed. Resource-saving energy and raw materials management have been top priorities for the company for many years now. Moreover, Tönnies works closely with farmers to develop sustainable solutions in the fields of livestock farming, transport, and slaughtering. Tönnies Research has also been working on projects to establish the scientific basis for public debates and to contribute to continuously improving the conditions for livestock farming for many years.

The next step towards expansion of this commitment and openness to dialogue is the newly launched online platform. On www.toennies-tierschutz.de, Tönnies demonstrates its awareness for animal welfare and proactive animal protection. This is also the start of a new dialogue campaign: Tönnies will discuss all topics relevant to its business activities with stakeholders and the general public.