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AN(12)6957:1
PICK – International challenges
THE STRUCTURE OF BONAFARM GROUP
2012.10.05.
●
The three food processing
companies are Pick Szeged Zrt.
(meat processing) , Sole-Mizo Zrt.
(dairy production) and Csányi
Winery.
●
Four agricultural companies produce
the necessary raw materials: Bóly
Zrt., Dalmand Zrt., BonafarmBábolna Feedstuff, and Fiorács Kft.
●
Bonafarm Zrt. Is in charge of
creating the Group strategy and
implementing cooperation.
●
The annual turnover of the Group
exceeds EUR 550 mn
●
The total number of employees in
the Group is over 5500
●
Our aim is to be one of the key food
processors in the Central-EasternEuropean region.
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Food processing
Our products are made from natural raw material grown or produced on our
own farms
● The food processing companies of
the Group are key players in the
Hungarian meat, dairy and wine
sector.
● Raw material comes from the
agricultural producers of the Group
or from long time business
partners
● Thus it is ensured that only the
finest materials enter the
production process.
2012.10.05.
2
PICK SZEGED
● Established in 1869
● Estimated market share in Hungary is around 30%
● Field of operation covers phases from slaughtering to
the process of meat products
● More than 400 000 pigs are slaughtered annually
● Annual sales of the famous Winter Salami is around 3
mn pieces
● The company produces more than 45 000 tones of
meat products every year
● Plants are situated in Szeged, Baja, Alsómocsolád and
Pécs
● The annual income is around HUF 60 bn, one third
coming from exports
3
The brand leader product
4
And many other products
Brands:
5
Pick is an export oriented company
located in Hungary
MEAT SALES
53% 47%
Domestic
Market
Export
MEAT PRODUCT SALES
29%
71%
Forrás: Pick Szeged Zrt.
Domestic
Market
Export
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We export to 35 countries
Our products are present in more than 200 retail chains
around the world
Forrás: Pick Szeged Zrt.
7
GERMANY, AUSTRIA, SWITZERLAND
We are at „home”!
4000 ton sales per year
Germany
Ungarische salami – appreciated
category
High brand awareness
Austria
Listed in every chain
Switzerland
Subsidiary close to Munich
Forrás: Pick Szeged Zrt.
8
Russia
Our 2nd largest market
Russia
2200 ton sales per year
Subsidiary in Moscow
Listed in every major chain
Ringa bacon is a houshold
name
Forrás: Pick Szeged Zrt.
9
JAPAN
Our 3rd largest market
400 ton sales per year
Japan
Representative office in Tokyo –
deep knowledge of the market
Food service frankfurters –
tailor-made recipes
Mangalica is a highly
appreciated spciality
Forrás: Pick Szeged Zrt.
10
Hong Kong, Taiwan, Thailand, Malaysia,
Singapore and China
Markets of the future
Representative office in Hong Kong
China
Products:
Salami, liver pate
Frozen meat
Mangalica
Taiwan
Thailand
Hong Kong
Singapore
Malaysia
Forrás: Pick Szeged Zrt.
11
Canada, USA
Pick Wintersalami is one of the very
few imported European salamis
80 ton sales per year
Canada
Focus on ethnic stores
USA
Forrás: Pick Szeged Zrt.
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United kingdom
Fastest growing European market
100 ton sales per year
Listed in the largest chains
United Kingdom
Co-branding
Fierce European competition
Strict quality requirements
High animal welfare standards
Forrás: Pick Szeged Zrt.
13
Netherlands
brand
90 ton per year
Netherland
Co-branding
Representative office
Forrás: Pick Szeged Zrt.
14
Sweden
More than 40 years presence
180 ton sales per year
Listed in the largest chains
Sweden
Strong in food service
Healthy and environmentally aware
consumers
Forrás: Pick Szeged Zrt.
15
CENTRAL EUROPE
High Pick brand awareness
Poland
1.200 ton sales per year
Listed in every country
Czech Republic
Ukraine
Slovakia
The fastest growing market is
Slovenia
Slovenia
Romania
Croatia
Subsidiaries
Forrás: Pick Szeged Zrt.
Bulgaria
Serbia
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The secret of the international success
1. Product: Wintersalami, original recipe since 1869,
traditional technology, only natural ingredients
2. Traditional BRAND
3. Expertise of decades, committed colleagues in production
and sales
4. Knowing the local markets, personal connections
5. Premium Price – Pick Salami is the highest quality and
most expensive in its category on every shelf!
Forrás: Pick Szeged Zrt.
17
Consequences
 The sole source of growth and survival is export
(especially with the high value, high quality traditional product, like ours, and specially being in
Hungary with the decreasing disposable income)
 The target regions of growth were shifted to the far east
(Japan, China, Hon Kong, Thailand, etc.)
 Consumer behaviour is changing, but trends are not obvious
(need for healthy products, weakening brand loyalty, price sensitivity increases everywhere)
 Unfavourable global trends
(growing population, ethnical changes, climate, more alternatives for the use of crop, increasing
feed price, etc.)
 Unreliably market reaction even on very short term
(Unstable market mechanism, speculation)
Growth can only be based on improved efficiency and higher added
value
Forrás: Pick Szeged Zrt.
18
Consequences
On micro level we have no other chance but to adopt to the global
trends in many areas in a confusing word. E.g.
 Consumer income
(better quality in smaller amounts vs. cheaper products)
 Consumer behaviour and brand awareness
(less income vs. increasing need for healthier products)
 Taxation
(different VAT level in neighbouring countries)
 Transport cost
(growing markets are very far)
 Differences in import regulations
(free trade vs. stronger protectionism, even applied in the private sector)
 Market structure, business culture, negotiation power of retail
(reliable, strategic relationships, vs. unfair trade)
Forrás: Pick Szeged Zrt.
19
Consequences
With regard to the proposed new CAP system, we fully agree with the
opinion of COPA-COGECA as submitted to the Commission.
NOTES:
 To make clear preferences between targets (efficient production, create
jobs, save the environmental)
 To maintain subsidies dependent on producing (to a certain extent) is
unavoidable to serve the targets
 Agriculture is for food production, so the whole food chain should be
regarded as the object of matter, and subsidies must serve the
development of the whole food sector
 The more extensive bureaucracy does not fit to higher efficiency
 CAP 2014-2020 is a critical investment, and probably the last occasion
for the EU countries to spend on agriculture from common source
Forrás: Pick Szeged Zrt.
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Thank you for your attention!
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