Slaney move should get green light - ABP boss

THE proposed move by ABP to take a 50pc stake in Slaney Foods should get the green light from Europe in about two months, the outgoing chief executive of ABP has said.

Paul Finnerty said it is hard to be precise, but he believes EU competition authorities will give their determination by mid-summer.

“We’re in ongoing discussion with the EU authorities. I think the transaction would go through. We expect that to work its way through to a satisfactory conclusion. I think it will all be done and dusted in approximately two months,” he said.

Farm bodies have raised concerns over potential competition issues arising in the beef sector. The IFA has pointed out the deal would see ABP move from processing 22pc of the beef kill to 28pc, along with 50pc of rendering in Ireland.

But Mr Finnerty dismissed the concerns, saying there’s going to be more consolidation in the business.

“I think the reality is that if you look at our track record, we’re up at the top of the tables in terms of cattle price. So if you look at the top five plants, we’re usually in the top three,” he said.

“That’s ABP. Slaney is a very similar business in beef, in that it’s a top payer. We both go for premium quality cattle to service premium quality customers, and none of that’s going to change.

“We have just under 22pc of the national kill and Slaney has just less than 6pc. I think it’s a great transaction for Slaney and it’s a great transaction for ABP.”

Mr Finnerty was speaking on a site visit to ABP’s Ellesmere plant in the UK by Foreign Affairs Minister Charlie Flanagan, who was on a two-day visit to Britain to engage with the Irish community ahead of the referendum. ABP completed its £25m refurbishment of its Ellesmere plant last year, with the facility, employing 727, now one of the most advanced, efficient and sustainable beef processing operations in Europe.

Mr Finnerty said a Brexit could end up displacing Irish beef exporters into the UK with south American exports.

“That could only have an adverse impact on cattle price in the UK, Northern Ireland and the Republic of Ireland. So, from a primary producer perspective, a Brexit would have that negative consequence,” he said.

“The trading architecture in beef, as far as Europe and the rest of the world is concerned, has WTO rules protection. Produce that comes in from other big beef producing territories, and I’m thinking of South America, there’s a tariff regime that has the impact of adding €3 and €5 per kilo to the price of steak.”

He said an exit means the UK leaves the WTO rules. “That means the UK is totally free to deal with other countries on a tariff-free basis.” Mr Finnerty is due to step down at the end of September, but remained tight-lipped on his plans.