Vion sells ingredients division for €1.6 billion and says future meat market lies beyond Europe

Vion sells ingredients division for €1.6 billion and says future meat market lies beyond Europe

Vion has reached agreement to sell its ingredients division to Darling International in the US at a price tag of €1.6 billion.

Darling is North America’s largest provider of rendering and bakery residuals. It recycles beef, pork and poultry by-product steams into useable ingredients including tallow, feed-grade fats, meat and bonemeal, poultry meal and hides.

Vion says the sale means its equity is now making a strong recovery and will total approximately €400 million ensuring it can now provide a solid financial background for Vion Food.

The company’s message at ANUGA this week is that the future of the meat market lays outside the borders of Europe in China, Australia and Japan.

“It’s good to get a foot in the door in a new market, but in the long run it’s not enough,“ states Patrick Ballering, Commercial Director at Vion Food International. Based in Hong Kong, he is responsible for the continental sales markets of North and South America, Asia, Africa and Australia.

“In 2013, we will export approximately 150,000 metric tons to countries outside Europe. Of those, Hong Kong and mainland China is by far and away our key market. We sell around 52,000 metric tons of meat in this region alone. The next group comprises Australia, Japan and South Korea, all of roughly equal significance.”

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