How Does PHW-Gruppe LOHMANN & CO. AG Company Work?

The company's dominant Poultry segment, primarily under the WIESENHOF brand, manages the entire process from hatcheries and fattening farms to feed production, veterinary services, logistics, slaughtering, processing, and distribution. This vertical integration is key to maintaining high food safety standards and full traceability, ensuring products are safe from farm to fork.

A significant aspect of PHW-Gruppe's poultry operations is its dedication to animal welfare. Over 97% of its German chicken production meets husbandry level 2 or higher standards. The group has a long-term goal to extend husbandry level 3 farming to 100% of its fresh chicken portfolio in Germany by the end of 2040.

Since 2018, PHW-Gruppe has strategically expanded into Alternative Protein Sources, aiming to mirror the successful vertical integration of its poultry business. This segment focuses on developing and offering plant-based products alongside its traditional poultry offerings, addressing evolving consumer preferences and the global demand for diverse protein sources.

Through its subsidiary Lohmann Animal Health GmbH & Co. KG, the company is a global leader in salmonella vaccines and a major provider of feed additives. These products are crucial for maintaining animal health and welfare within the group's operations and are also supplied to external markets, contributing to the overall health of livestock industries.

The company's commitment to shaping the future of nutrition is evident through its strategic partnerships and investments in the alternative protein sector. This includes collaborations with cultivated meat companies and investments in mycoprotein production, signaling a proactive approach to market evolution.

PHW-Gruppe LOHMANN & CO. AG is investing significantly in operational enhancements and sustainability. A notable investment of approximately €65 million in 2024 aims to bolster energy independence and ensure the long-term viability of its production facilities.

A core competitive advantage for PHW-Gruppe LOHMANN & CO. AG lies in its robust vertical integration, ensuring efficiency and quality control throughout its poultry value chain. Its leading brand benefits from a '100% Produced in Germany' guarantee, fostering strong consumer trust and loyalty.

The company is dedicated to achieving climate neutrality at its German production sites by 2040 and has submitted its commitment to the Science-Based Targets Initiative (SBTi) in December 2024, demonstrating leadership in environmental responsibility and adaptation to evolving consumer demands.

PHW-Gruppe LOHMANN & CO. AG is the dominant force in the German poultry sector and a major player in the European market. Its established brand recognition and widespread agricultural network are key to its market leadership.

The company faces challenges from import competition leading to price pressures and increasing production costs, which saw poultry prices rise by 25% between March 2022 and March 2023. Evolving animal welfare and environmental regulations also necessitate ongoing adaptation and investment.

PHW-Gruppe is committed to future profitability through strategic investments, including €65 million in renewable energy projects for 2024. The goal is to source one-third of its energy from its own renewable plants by 2035 and achieve climate neutrality at German production sites by 2040.

The company is expanding its alternative protein business, targeting €65 million in sales by FY 2025/2026. This includes exploring new technologies like mycoprotein production, reflecting a dual-track approach to growth alongside its traditional protein offerings.