First announced in April this year, the merger was designed to help the companies grow and compete at a global level, including targeting China. They hoped to make Belgian pork as well known as other national icons such as waffles and Tintin.
The family-owned business Westvlees has been in operation for more than 50 years, and has plants in Aubel, Moorslede and Staden, where it slaughters and processes approximately two million pigs a year. Covalis, which slaughters a similar number of pigs per year at its Comeco and Covameat slaughterhouses, is based in Leuven and forms part of Covavee – a cooperative enterprise of around 700 pig farmers. The combined companies will now control a third of the Belgian pork market.
When first announced, the group said the company would continue to be managed with the mindset of using mostly family-owned companies as suppliers, with the cooperative to be made accessible to new participants.
'New markets'
Westvlees CEO Jos Claeys said the merger would help the companies compete on a global scale. “This merger will give us an enormous range of opportunities and open up the global export market. A company’s size is important when exporting and the Belgian Pork Group will give us a critical volume and help us export to new markets like China.”
Covalis CEO Luc Verspreet said: “This merger will help us play in the Champions’ League and remain strong on the global market. We have analysed all the global markets and will be approaching each one differently, which our merger allows us to do.”
Joris Coenen, marketing officer at the Belgian Meat Office welcomed the decision, saying: “The merger brings new opportunities in the pig meat trade for both companies and their suppliers. After all, the new group is capable of supplying to a broader category of customers. VLAM/Belgian Meat Office wishes the Belgian Pork Group good luck!”
Farmers union president Peter Vanthemsche said it was “a strong signal that reflects a firm belief in the sector and an innovative restructuring of the pig chain”.