VION Food Group Nuffield CSC VION Food Group, profile - - PowerPoint PPT Presentation

VION Food Group

Nuffield CSC

Page 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 high- quality 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

VION, one shareholder, farmer listed

FOOD INGREDIENTS

Pork, beef, poultry, lamb Convenience products ZLTO/NCB Ontwikkeling Executive board Ingredients (i.e. Fat, Proteine, Gelatine)

NL DE UK Int. Core activities

Supervisory board

Int.

VION Locations

VION Food Netherlands VION Food Germany VION Food UK VION Food International VION Ingredients

VION products

Fresh Meat Convenience 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 .. Exact amounts and fat levels. .. Optimum freshness. .. Time savings through process

• ptimization.

.. Savings in de-boning and processing. 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

• perations.

VION tools to interact with (primary) sourcing

VION Ingredients VION Food

Sourcing Marketing & Sales Farmers Processing Retail Foodservice Food Industry

VION’s position in the Pork Chain

40% 60% 40% ‘Creating value on raw materials’ 40% Reduction of failure costs Reduction of failure costs Increasing energy efficiency

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

Assisting producers to become the best

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

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 heavy Too light Too fat And their impact on price

Development of Manure Processing

• Feasibility study for a

manure 125,000 ton/year processing plant, including digestion

• Ecoson decreases costs

for farmers for manure disposal

Manure processing

• 10.000

20.000 30.000 40.000 50.000 60.000 2007 2008 2009 2010 2011 2012

• Excess manure in the Netherlands
• High costs
• Future limit for pig production

Electricity Effluent Solids Electricity

Waste water treatment plant Refinery C1 processing plant

Unique concept

Glycerin

Digester Manure Biodiesel

Sourcing Marketing & Sales Processing Retail (Europe) Foodservice (Europe) Food Industry (World)

Business models in pork supply chain From farmer listed to listed

Integrated supply chain Processing, Marketing & Sales Coöps Listed:

• Danish Crown (Coöperative)
• Unilever

Listed:

• Nestlé
• Smithfield (Vertical integration)

Farmer listed:

• VION (Strategic shareholder)

40% 60% 40% Valorisation ‘Byproducts’ 40% Pig farmer (NL/DE/UK) Cattle farmer (NL/DE/UK) Poultry farmer (UK) Sheep farmer (AS/UK) Vegetable / Potato grower (NL/PL)

Competitor benchmark global top 3 pork players

Source: 2007 Annual report, SEC 2007 6,3 5,9 6,5 6,5 6,0 5,4 7,8 7,1 7,5 6,7 5,4 4,0 9,6 7,1 7,4 6,3 5,9 2,9 2008 2007 2006 VION Smithfield Danish Crown 2005 2004 2003 161 174 234 97

• 26

233 223 208 251 249 205 153 118 114 85 VION 2007 Danish Crown Smithfield 2006 2005 2004 2003

Thank you