Hard times for Europe’s Pork Industry


No doubt smarting from BB&T Capital’s downgrade from ‘buy’ to ‘hold’, the pork giant Smithfield announced an increase in its presence in Romania with a further €20 million investment in pig production in Gataia. This will ensure low cost meat exports once the current Swine Fever outbreak has passed and may also enhance supply synergies with their Spanish partner Campofrio.  Smithfields is evidently trying to develop their low cost production base in a view of its targeting of high value consumer markets.


Meanwhile Vion is gaining market share in both Germany and the UK through acquisition and organic growth, boosting their economies of scale. Their increasingly powerful market position has recently caused their pig suppliers to protest at low prices.

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