Agriculture Minister Simon Coveney is coming under increasing pressure regarding the proposed joint venture between ABP and Slaney Foods.On Monday, Minister Coveney provided a statement to farmersjournal.ie setting out his intention to write to the Competition and Consumer Protection Commission (CCPC) outlining the “significant concern amongst farmers”.
Agriculture Minister Simon Coveney is coming under increasing pressure regarding the proposed joint venture between ABP and Slaney Foods.
On Monday, Minister Coveney provided a statement to farmersjournal.ie setting out his intention to write to the Competition and Consumer Protection Commission (CCPC) outlining the “significant concern amongst farmers”.
The move by Coveney came less than 24 hours after the IFA staged a protest outside Slaney meats in Co Wexford. In the region of 1,000 attended the rally.
IFA livestock committee chair Henry Burns has acknowledged the move by the Minister for Agriculture Simon Coveney that he will write to the (CCPC) about the ABP investment in Slaney Meats.
He said: “Farmers want to know what the Minister’s view on the issue is. They also want the Minister to include in his submission to the CCPC the issue of price competition in the processing and rendering sectors.”
The issue is complex, however, with two jurisdictions, the UK and the eurozone, involved in the potential deal. Therefore, ABP has to notify either the CCPC or the competition unit in the European Commission.
If ABP notifies the European Commission, it is expected that the CCPC here will be asked for its input as it is a member state.
If ABP completes the buyout of the Allens’ 50% of Slaney Foods, the other half of which is owned by Linden Foods, ABP would have control of 30% of the beef kill, 40% of the sheep kill, and 50% of rendering in Ireland.
Concentration
ICSA beef chair Edmond Phelan said he is “deeply disturbed” about the potential of further concentration of the beef and sheepmeat processing capabilities in Ireland.
The Irish Farmers Journal understands that ABP is also progressing moves into the higher-value beef proteins powder sector.
Similar to dairy whey protein powder, beef protein powder is used in athlete nutrition.
The product is understood to be in its infancy and is perhaps at research and development stage.
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