The PHW Group maintains its market position despite unfavourable underlying conditions

4.5% increase in turnover to € 2.45 billion / Animal nutrition and health sector grows by 8% / Wiesenhof well prepared for the issue of animal welfare / Anticipation ahead of the World Cup and BBQ season 

Rechterfeld, Germany, May 2014. The PHW Group has continued to enjoy growth in its core business sector, poultry speciality, despite challenging underlying conditions in terms of raw materials. In the last financial year (effective date 30.06.2013), the turnover of this family-run company rose by 4.5% to € 2.45 billion due to pricing factors. At € 1.38 billion, the turnover of the poultry speciality business sector was 3.5% above that of the previous year (€ 1.33 billion). The PHW Group had 5,696 employees in the financial year ended, representing a significant increase compared to the previous year (5,483). “Germany remains our most important market and, undoubtedly, also one of our most difficult compared to other European countries. More stringent demands as regards food safety, animal welfare, labelling and origin continue to be set against low consumer prices for poultry and, overall, a high degree of price sensitivity,” explained Peter Wesjohann, Chairman of the PHW Group. Together with its Polish subsidiaries BOMADEK and DROBIMEX the PHW Group sold around 535,000 tonnes of poultry in the 2012/13 financial year. More than half of this (303,000 tonnes) was chicken. The export ratio was approx. 22%. 

Animal nutrition and health division clearly in the black 

Around 30% of PHW’s turnover was accounted for by the animal nutrition and health sector with the major subsidiaries MEGA Tierernährung GmbH & Co. KG, Lohmann Animal Health GmbH and GePro Geflügel-Protein Vertriebs GmbH & Co. KG. Turnover in this division rose by 8% from € 683 million to € 737 million. Since the beginning of May 2014 Lohmann Animal Health GmbH has belonged to the American pharmaceutical corporation, Elanco/Eli Lilly. The PHW Group with its subsidiaries NUTRILO, LOHMANN PHARMA and VIBALOGICS will remain at the site in Cuxhaven with about 250 employees.  

Wiesenhof “Privathof” poultry as a model for the future 

Since 2011, the PHW Group has been taking account of the growing demands of consumers for increased animal welfare with a new Wiesenhof rearing concept: “Privathof” poultry attaches great importance to animal welfare and was awarded the entry-level certificate “For greater animal protection” by the German Animal Protection Association (“Tierschutzbund”) in January 2013. Wiesenhof is able to look back on a positive first year: “Since the launch of the “Privathof” concept back in October 2011, we have increased the number of operations from 12 to, at present, 38. Sales have increased six-fold since then and, today, this model represents around 2% of total revenue. We regard the “Privathof” concept as a model for the future and are extremely committed to developing this channel. This, of course, requires that the trade and consumers remain willing to pay for greater animal welfare and that demand continues to grow,” explained Peter Wesjohann. 

Outlook: Wiesenhof looks forward to the World Cup and BBQ season 

Peter Wesjohann recognises that the poultry industry is facing a herculean task. According to Wesjohann, the current lack of confidence in the agricultural and food industries could, in the medium term, result in market distortions and an increase in third country imports. He feels that the biggest joint task for producers, retailers, consumers and politicians is thus to ensure that produce from the food industry is valued once again and that confidence is established in both working methods and products.  

This year the PHW Group is anticipating the World Cup to act as a major stimulus. PHW board member, Peter Wesjohann, is optimistic about the future. He believes that if the weather is kind, the chances of a successful summer BBQ season are excellent.