HKFoods warns of ongoing beef supply pressure in Finland
The meat company says the cattle shortage is set to persist; recent industrial action is expected to increase operational expenses
FINLAND – HKFoods has said the ongoing shortage of beef in Finland is unlikely to ease soon, as reduced cattle numbers continue to limit domestic supply.
The company, formerly known as HKScan, issued the warning while releasing its financial results for the first quarter of 2025 on 7 May.
During the quarter, a shortage of minced beef became a widely discussed issue in Finland, with CEO Juha Ruohola linking the problem to a steep decline in national cattle stock.
He added that this trend is expected to continue, which would keep beef supply tight and put further pressure on meat availability in the country.
Ruohola stressed the company’s focus on preserving self-sufficiency in Finnish meat production, calling it essential not only for business stability but also for national supply security.
Despite these challenges, the group’s net sales for the quarter grew by 2.2% to US$251.4 million.
However, Ruohola noted that Finnish consumers are cutting back on meat consumption, shifting more towards lower-cost food items.
As a result, HKFoods saw reduced sales from its own meat brands, with demand for meat products dropping compared to the same period last year.
In 2024, pork and beef products accounted for 29% of the company’s US$1.1 billion annual revenue, making them a major segment after sausages, bacon, and charcuterie, which contributed 31%.
The company is currently in the process of restructuring its production network to manage costs and adapt to market shifts.
It expects to achieve annual cost savings of approximately US$1.1 million from the second quarter onward, although the full impact will not be seen until 2026.
As part of the restructuring, HKFoods has closed its beef and pork slaughterhouse in Paimio following a continued decline in cattle supply.
In addition, the company is evaluating the future of its bacon processing plant in Swinoujście, Poland, which is expected to contribute about US$75.5 million in revenue this year.
Retail remains the company’s primary sales channel, accounting for 63% of total income in 2024.
The first quarter also saw HKFoods post an EBITDA of US$13 million from continuing operations, marking a 36% year-on-year increase.
Operating profit rose to US$4.9 million, up from US$1.3 million the previous year, while the margin increased from 0.5% to 2%.
The company ended the quarter with a net profit of US$861,000, reversing a net loss of US$4.1 million from the same period in 2024.
Meanwhile, HKFoods is still assessing the impact of a workers’ strike in April that hit several Finnish meat companies.
Three of the firm’s sites—in Forssa, Mikkeli, and Vantaa—were affected by the three-day industrial action.
According to Ruohola, the strike interrupted operations and led to a backlog of pigs at contract farms, with the resulting delays expected to raise costs in the coming months.
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