May 1, 2008

Dutch pork prices will go up, pork company CEO promises

Pork prices will rise inevitably in due course, said Daan van Doorn, CEO for Vion Foods in the Netherlands.

"It will not happen straightaway, as many markets do still have plenty of stocks. But the tide is going to turn,¡± he said.

Van Doorn was quoted making these comments as Vion presented its financial results for 2007, reports the Dutch newspaper Agrarisch Dagblad.

The food company noted that in 2007 results for the fresh meat division were under heavy pressure and financial achievements were worse compared to 2006.

Abundant pork supplies throughout Europe are said to be causing this.

Van Doorn expected this situation to continue for some time.

"Supermarkets are still full, meat processors in Italy and elswehere have plenty of meat stocks and the dollar is not cooperative either. In addition, the piglet production continues to be very high," he said.

Van Doorn emphasised that Vion is trying to pay good prices for pigmeat. "Last year, we paid more than would have been responsible," he claims.

Vion announced last week that it has started a joint venture with the Russian meat processor Ramfood Group of Companies, a company with turnover of more than EUR 86 million a year.