VION Food Group. Nuffield CSC

Transcription

1 VION Food Group Nuffield CSC

2 VION Food Group, profile International food company Turnover 8,9 billion 27,000 employees Head Office Eindhoven, the Netherlands Mission VION wants to be the reliable partner in the food chain, offering our customers and consumers highquality food and ingredients of agricultural origin. Objective VION wants to become a leader in (selected) food, ingredients and service market segments Motto Passion for Better Food Page 2

3 VION, one shareholder, farmer listed ZLTO/NCB Ontwikkeling Supervisory board Executive board FOOD Core activities INGREDIENTS Pork, beef, poultry, lamb Convenience products Ingredients (i.e. Fat, Proteine, Gelatine) NL DE UK Int. Int.

4 VION Locations VION Food Netherlands VION Food Germany VION Food UK VION Food International VION Ingredients

5 VION products Fresh Meat Convenience Ingredients

6 VION tools to interact with (primary) sourcing VION Food VION Ingredients MIXING SYSTEM FOR RAW MATERIALS VION has developed a mixing system named BASICS which is suitable in all product areas: various sausages and cold meats. The benefits:.. Standardization of raw materials FARMINGNET IS AN AUTOMATED SYSTEM It provides pig breeders with a speedy and clearly structured supply of abattoir data via the internet. With Farmingnet, the farmers obtain among other things valuable feedback, including slaughter and slaughter results data and the option of a free benchmark with other pig breeders, i.e. management data which will be of considerable financial benefit for them and help increase the business success of their pig-breeding operations... Exact amounts and fat levels... Optimum freshness... Time savings through process optimization... Savings in de-boning and processing.

7 VION s position in the Pork Chain Creating value on raw materials Farmers Sourcing 40% Processing 60% Marketing & Sales Retail Foodservice Food Industry Increasing energy efficiency Reduction of failure costs Reduction of failure costs

8 Farmer listed spearheads 1. Bottom line management: Improve bottom line result of farmers by use of FarmingNet and advise 2. Programme Partnership in business. Programme aimed at strengthening our relations with suppliers and other stakeholders. 3. Supply chain management: Improve supply chain efficiency 4. Conceptmanagement Convert societal demands regarding sustainability and animal welfare into attractive (triple P) market concepts. 5. Active Public Affairs / CSR policy Convert societal issues in effective supply chain policies

9 Assisting producers to become the best

10 Reduction in the failure costs Faster exchange of information = gain profit VION in business together with farmers Profit Meetings (2x year): practical, educational Face to face management assistance FarmingNet

11 And their impact on price Working with suppliers to reduce failure cost VION FarmingNet an IT system providing rapid internet feedback to producers on the previous days kill. KPI s on weight, grade and health plus trend and benchmarking data are provided Figures are all related to price per kilo aimed at driving improvements a better pig to meet retail needs. Too fat Too light Too heavy

12 Development of Manure Processing Excess manure in the Netherlands High costs Future limit for pig production Feasibility study for a manure 125,000 ton/year processing plant, including digestion Manure processing Ecoson decreases costs for farmers for manure disposal

13 Glycerin Unique concept Refinery Biodiesel Digester Manure Electricity Electricity C1 processing plant Effluent Solids Waste water treatment plant

14 Business models in pork supply chain From farmer listed to listed Valorisation Byproducts Pig farmer (NL/DE/UK) Cattle farmer (NL/DE/UK) Poultry farmer (UK) Sheep farmer (AS/UK) Vegetable / Potato grower (NL/PL) Sourcing 40% Processing 60% Marketing & Sales Retail (Europe) Foodservice (Europe) Food Industry (World) Integrated supply chain Processing, Marketing & Sales Coöps Listed: - Danish Crown (Coöperative) - Unilever Listed: - Nestlé - Smithfield (Vertical integration) Farmer listed: - VION (Strategic shareholder)

15 Competitor benchmark global top 3 pork players 9,6 Danish Crown 5,4 6,0 5,9 5,4 6,5 6,7 6,3 6,5 7,5 7,4 5,9 7,1 7,1 6,3 7,8 Smithfield VION 4,0 2, Smithfield Danish Crown VION Source: 2007 Annual report, SEC 2007

16 Thank you