“Marel Meat’s revenues almost doubled over 2014, a significant improvement on previous years. Moving from customized solutions to modularized has been an important factor in advancing Marel’s meat operations. Some landmark sales were finalized during 2014 and reference projects have also been established around the globe.”
David Wilson, Managing Director of Marel’s Meat Industry Center.
During the year, Marel took several steps to streamline operations in the company’s meat activities. Business units and operations were consolidated, which will result in increased synergies in sales and innovation. Landmark sales were finalized during 2014 in all continents and reference projects have been established around the globe. The meat segment accounted for 17% of Marel’s revenue in 2014.
Market conditions had a significant effect on the division’s business. In both the U.S. and Europe, the pork sector has been struggling. In Europe, prices for pork products have been very low over the past 18 months. The company saw continued investment outside Europe and the U.S., especially in South America, where a number of large projects are taking place.
During the course of 2014, Marel Meat successfully integrated the business units of Product Center Meat Harvesting / Fresh Value Added and Product Center Preparation (the former Carnitech business, which was acquired in 2013). This was a strategic action to strengthen Marel’s core meat activities, and find the synergies of business units within Marel that are operating within the same sector. A strategic decision was also taken to transfer the activities in the Oss facility to Boxmeer in the Netherlands, and ultimately close the Oss location. This was also successfully completed by December, without any disruption to customers.
The segment’s manufacturing activities were absorbed within the manufacturing facility in Boxmeer, and a new building was erected to house the relocated Meat activities.
Following these improvements, Marel’s Meat Industry Center is ready to tackle future challenges and create increased value for its customers. The future remains bright, with a fresh Marel approach to the global red meat industry and with a number of key projects in strategic markets.
Marel has worked in partnership with hundreds of red meat processors globally, in developing and supplying equipment of the highest standard. “Innovation through partnership” sums up the philosophy and the way the company has worked with the red meat industry for many years. By working closely with its customers and partners, Marel creates the best solutions for red meat processing, primary or case ready. The market potential is huge, with many opportunities throughout the world. Marel will continue to focus on selected product / market combinations, and continue its development within key products – such as deboning (StreamLine and DeboFlex), and its program for product modularization. The segment will also focus on Case Ready activities, where Marel will create the necessary solid foundations to capitalize on the enormous opportunity in this sector.
High expectations exist for further growth in South America, particularly in the pork industry in Brazil. Deboning and trimming of higher-valued primals creates the opportunity for Marel’s unique StreamLine solutions, which offer not only product traceability, but also yield monitoring and throughput improvements. Trim is becoming an increasingly valuable product, and Marel now offers four unique solutions to support its customers with optimizing the value of this product.