PHW Group continues its growth course and intensifies the drive to expand "Privathof" poultry
5.2% increase in turnover to EUR 2.34 billion / Wiesenhof grows by 3.5% / High level of investment and increase in personnel / Animal nutrition and health continue to thrive / "Privathof" poultry awarded entry-level certification from the German Animal Protection Association
Rechterfeld, 13 February 2013. With investments totalling EUR 101.4 million, an increase in personnel and the strong demand for high-quality poultry, the PHW Group, along with its core business sector Wiesenhof, was able to successfully continue its growth course in the last financial year (effective date 30.06.2012).
The total turnover of this family company with 5,483 employees (previous year: 5,319) rose in the 2011/2012 business year by 5.2% to EUR 2.34 billion (previous year: EUR 2.23 billion). Of this sum, EUR 1.33 billion were allocated to Wiesenhof (previous year: EUR 1.29 billion) – this represents an increase of 3.5%. The positive development recorded in the field of poultry specialities was possible thanks to continuous steady demand and the success of the convenience sector. Following investments in excess of EUR 200 million over the past two business years, the slaughterhouse and processing plants are now amongst the most modern in the whole of Europe: "In spite of great fluctuations on the raw materials market and considerably higher feed prices, which seriously impacted on the earnings situation, we were able to pursue our quality strategy. The demand for high-quality poultry is set to rise both nationally and internationally. The PHW Group achieves its competitive edge with its high degree of specialisation, outstanding product quality and marketable innovations", explained Peter Wesjohann, Chairman of the PHW Group.
Overall, sales of poultry specialities including chicken, turkey, duck, convenience and sausage products have risen by 1.1% from 494,541 tonnes to 500,168 tonnes. The popularity of poultry meat continues to grow given its nutritional benefits and positive life cycle assessment. Based on initial estimates, pro-capita consumption in 2012 was 19 kg compared to 18.9 kg in 2011.
With a 32.6% increase in turnover from EUR 111.7 million to EUR 148.0 million, the two subsidiaries in Poland, BOMADEK and DROBIMEX, which are active in the poultry sector, also contributed to the growth of the PHW Group.
Prevention First: Animal nutrition and health continue to thrive
The animal nutrition and health sector continue to enjoy considerable growth. The mixed feed plants recorded a price-driven increase in turnover of 11.8% to EUR 301.7 million (previous year: EUR 269.8 million). With a sales volume in excess of 1.2 million tonnes, MEGA Tierernährung with its 5 plants is one of Germany's leading poultry mixed feed producers.
Together with its shareholdings in the USA and, for the first time, consolidated sales companies in the feed additive, poultry vaccine and animal pharmaceuticals sectors, Lohmann Animal Health Cuxhaven achieved a 4.9% increase in turnover – from EUR 243.8 million to EUR 255.7 million.
Lohmann Animal Health follows the maxim "Prevention first". After years of research and development work, Lohmann Animal Health launched a new vaccine in 2012, AviPro Salmonella Duo, which has already been registered in a number of European countries. This is the first bivalent live vaccine offering protection against the two major types of Salmonella. Vaccines generally mean that the subsequent treatment of diseases using antibiotics in man and animals is superfluous. They protect the animal flock in a biological way. Thanks to this research work and our claim "Prevention first" we have succeeded in achieving meat production in accordance with the welfare of man and animals and minimising the usage of antibiotics.
PHW Group is committed to sustainability
In the past business year, the PHW Group clearly demonstrated the importance it attaches to the issue of sustainability. Following the introduction of the "footprint" for chicken, turkey and duck and the use of green electricity and solar roofs at many farms, certified energy management systems were introduced in all large operations. The PHW Group is currently preparing for its first sustainability certification according to the new standard for the food industry. Wiesenhof is taking part in the pilot phase of this certification process which is being managed by the Zentrum für Nachhaltige Unternehmensführung (Center for Sustainable Leadership) or ZNU at Witten/Herdecke University in Germany.
Promoting the value of food industry produce
A huge wave of cost and price increases has swept over the entire food industry in the past year. Historically high feed prices have caused problems for poultry integration on an international scale. An increase in the prices paid by consumers for poultry is an inevitability. Yet, in order to achieve this, we all need to pull together: the trade, consumers, producers and politicians. It is important that the value and importance attached to food industry produce is enhanced and that confidence is created in working methods and products. Thereto, we are committed to open and transparent communication with all stakeholders. This represents both an opportunity and a Hercules challenge for the industry as a whole. To this end, we need realistic political framework conditions to prevent the agricultural industry in Germany from losing ground and to also stop market distortions from getting out of hand", explains Peter Wesjohann.
Wiesenhof "Privathof" poultry awarded label from the German Animal Protection Association ("Deutscher Tierschutzbund e. V.")
With its "Privathof" poultry, the PHW Group meets growing consumer demands for greater protection and welfare; what's more, this concept has proven to be a great success. Since the launch of Privathof poultry in October 2011, sales have increased fourfold. "The market success enjoyed by Privathof to date is confirmation that we are on the right tracks and also encourages us to keep up the good work. To start off with there were 12 farms which reared our "Privathof" poultry, today there are 28 operations in South Germany and, at present, 15 farms in North Germany have also switched over to the "Privathof" concept. We are now focused on continuously expanding this product", Peter Wesjohann emphasises. On 16.01.2013 the German Animal Protection Association ("Deutscher Tierschutzbund e. V.") awarded the entry-level certificate "For greater animal protection" for the first time for poultry and presented Wiesenhof "Privathof" with this new seal. Wiesenhof hopes that this label from the German Animal Protection Association will boost sales. Moreover, the valuable experiences gained with Privathof are to be applied more intensively. "We have already started a field study looking into the development of a Wiesenhof "Privathof" turkey product", reveals Peter Wesjohann.
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