Farmers hit out as meat merger gets the all-clear

Suppliers cite competition concerns over latest deals

FARMERS have claimed competition authorities must address a “serious” lack of competition in the meat-processing sector.

It comes as the Competition and Consumer Protection Commission (CCPC) cleared the way for the move by Dawn Meats to acquire Dunbia’s operations in Ireland.

Approval has also been granted for the strategic partnership which will see the Waterford-based and Northern Ireland-based firm establish a joint venture in the UK under the Dunbia name.

The scale of the combined businesses in the UK and Ireland will see it process around 900,000 cattle and 2.6 million sheep a year.

Jim Dobson, chief executive of Dunbia, said it will introduce a “fresh look” for the new Dunbia business in the UK. The combined UK businesses will be managed by Mr Dobson as chief executive and Dawn Meats’ Niall Browne as executive chairman.

The move means Dawn has acquired Dunbia’s operations in the Republic of Ireland, and it will now have nine facilities, including five abattoirs, after taking over the abattoir in Slane and boning hall in Kilbeggan.

Mr Browne said their focus would continue to be on quality and sustainability across three leading national businesses — Dawn Meats in Ireland, Dunbia in the UK and Elivia in France. They will operate 15 facilities across Scotland, England, Wales and Northern Ireland for both lamb and beef.

Mr Browne has pointed out that with the uncertainty of Brexit this should underpin the competitiveness of both operations.

Irish Farmers’ Association (IFA) president Joe Healy said it was the responsibility of the CCPC to ensure that there is competition in the beef sector and he claimed it was falling down on this.

He said the IFA had put a detailed independent report to them addressing the lack of competition in the sector.

The Irish Creamery Milk Suppliers’ Association (ICMSA) said it emphasises the urgent need for greater price transparency in the beef sector to ensure farmers have a level of confidence they are getting a fair price for their cattle.

Meanwhile, the European Commission has cleared under the EU Merger regulation the proposed acquisition of joint control over Linden Foods by ABP Food Group and Fane Valley. The Commission found it would not adversely affect competition.