German poultry firm PHW Group has seen a dramatic increase in sales of its high-welfare chicken products in 2016. The number of birds processed in this category has risen three-fold from 500,000 to 1.5 million per week over the last year alone.
The firm raised its investment in this part of its business to almost EUR239 million (US$253 million) from just over EUR115 million (US$122 million) the previous year with the aim to meet the growing demand for healthy and high-quality poultry meat. PHW Group expects this demand to continue to grow further in the coming years.
Wider product choice for consumers
Anticipating growth in this market, PHW Group launched its Wiesenhof-Privathof brand on its home market in 2011, offering poultry raised to higher welfare standards. Further choice to consumers is offered in the firm’s vegetarian and vegan product ranges.
“We give consumers alternatives to conventional husbandry with our various rearing concepts that offer a demonstrable added value for animal protection and see Privathof-Geflügel in particular as a future model,” said Peter Wesjohann, CEO of the PHW Group. “Conversion to Privathof-Geflügel will, however, require a commitment from everyone and is subject to consumers and retailers wanting this form of animal husbandry in Germany and being willing to pay more for animal welfare.”
With sustainability also a key driver in the German market, PHW Group has achieved national sustainability certification standards for all of its chicken and turkey slaughterhouses, as well as its Wiesenhof brand poultry sausages.
Group sales increase despite damaging fires
Focus on these key areas helped to support an increase of 3.2 percent in the Group’s sales for the fiscal year just ended to EUR2.46 billion (US$2.60 billion) from EUR2.38 billion (US$2.52 billion) the previous year, according to the company.
Sales might have been higher but for two fires at PHW Group’s slaughterhouses – at Donautal Geflügelspezialitäten in Bogen in February 2015, and Oldenburger Geflügelspezialitäten GmbH & Co. KG in Lohne in March 2016. Lost production following these catastrophes has already reduced the firm’s sales in this segment by 0.9 percent, and the impact of the second fire will still register in the current fiscal year.
Poultry subsidiaries in Poland, Bulgaria and the Netherlands contributed just over EUR471 million (US$500 million) to the Group’s sales in 2015-16 - 3.2 percent more than in the previous year.
In terms of volume, PHW Group achieved a 1.7 percent increase for all poultry specialties (chicken, turkey, duck, convenience and sausage) to 695,705 metric tons in 2015-16.
The group’s other divisions turned in satisfactory performance, according to the company’s annual report. For the Animal Nutrition and Health unit, sales expansion was achieved by Lohmann Pharma Herstellung GmbH and pet food operation, PetCom Tierernährung GmbH & Co. KG, while animal feed company, MEGA Tierernährung GmbH & Co. KG maintained performance at the same level as the previous year. Increased sales by Cuxhavener Nutrilo GmbH helped boost the Group’s Human Nutrition and Health division.
PHW Group one year ago was the third largest chicken producer in Europe according to the WATTAgNet Top Poultry Companies Database, with annual production put at 354 million broilers.
