HKFoods flags further beef shortages as cost of strikes yet to be felt

HKFoods has suggested a beef shortage in its home market of Finland is likely to continue, while a recent strike that affect its plants will bring added costs.

The warnings emerged as the meat business, previously trading as HKScan, reported results for the first quarter of 2025 this morning (7 May).

Beef and pork are one of the largest revenue earners for the listed business, contributing 29% to the company’s 2024 sales of €1bn ($1.1bn). Only sausages, bacon and charcuterie brought in more, with 31% of the group total.

CEO Juha Ruohola said today (7 May) a shortage of minced beef in Finland during the reported quarter “became a public issue”, linked to a “significant reduction” in cattle numbers in the country.

“Forecasts indicate that a similar trend will continue in the future, which means that there will continue to be a shortage of beef,” Ruohola added.

“It is important for HKFoods to maintain self-sufficiency in domestic meat. This is also of importance for national security of supply.”

HKFoods still managed to generate a 2.2% increase in first-quarter sales to €233.7m but Ruohola indicated consumers are eating less meat.

In 2024, poultry accounted for 23% of the company’s sales and meat-based meals 17%.

“Consumer demand in Finland weakened from the comparison period and shifted especially to lower-priced products. Demand for meat products in particular declined, which weakened the sales of HKFoods’ own brands,” Ruohola said today.

HKFoods has already announced plans to consolidate production as it seeks to realise annual costs savings of around €1m, which will start to be felt from the second quarter but not fully incorporated until the 2026 fiscal year.

In March, the HK and Kariniemen meat brands owner said it planned to close a beef and pork slaughterhouse in the town of Paimio as cattle numbers decline. That plan has now come to fruition, the company said today.

More recently in April, HKFoods said it was assessing the future of its bacon processing facility in Swinoujście, Poland, a site expected to generate around €70m in sales for the group business this year.

HKFoods, which counts retail as its largest sales channel with 63% of revenues in 2024, also reported first-quarter EBITDA today from its continuing operations of €12.1m, up 36%.

Elsewhere, EBIT rose to €4.6m from €1.2m in the corresponding period, while the associated profit margin climbed to 2% from 0.5%.

The net result was a profit of €0.8m, compared to a €3.8m loss a year earlier.

Meanwhile, HKFoods has yet to feel the full impact of workers’ strikes, which affected a number of Finnish meat businesses in April.