The Competition and Consumer Protection Authority (CCPC) last week cleared the way for Dawn Meats to buy Kildare Chilling.
The Irish Farmers Journal spoke to farmers about the takeover.
Beef and Sheep farmer Ronan Delaney, from Dunshaughlin.
Ronan Delaney – Dunshaughlin,
Co Meath
“It’ll be a big negative for producer groups who work off an average, Kildare Chilling were always out in front in terms of price.
“Irish Country Meats and Dawn Meats could be €6/kg whereas Kildare would be €6.10/kg. Kildare always kept the others on their toes.
“I suppose it’s a case of the big lads getting bigger and the independents getting out. The bottom line is that every bit of competition is important and this is going to reduce competition significantly.”
Flor McCarthy, centre, with Sean O'Donoghue, Teddy Creedon, Denis Halpin and Pat Dunne, Wicklow. \ Valerie O'Sullivan
Denis Halpin – Kildare IFA
sheep chair
“I am surprised that it [the acquisition] went ahead and to be honest, I’m very disappointed. Dawn Meats will have too much of the sheep kill now and there’ll be much less competition in the market.
“As bad as Kildare were they were always a small bit ahead price-wise. You’d be afraid that they’d stop the intake of lamb in Kildare altogether and increase intake in their Ballyhaunis plant.
“There’s a huge number of people employed there, so that’s worrying.”
Minister of State Pippa Hackett makes a presentation to Ken Matthews of the Offaly Lamb Producer Group. \ Odhran Ducie
Ken Matthews – Offaly lamb
producers group
“I don’t think it’ll be a good idea anyway, it will all depend on what they decide to do. They’re saying they’re going to spend €10m but which factory they’re going to spend that on is the question, either Ballyhaunis or Kildare.
“Will they decide to take all the sheep intake to one factory? If you take Kildare out of the area, it’ll be a serious blow to the midlands.
“Either way lamb price is going to be affected, you’ll now have a single quote even if they keep both factories in operation. I don’t think it’s going to affect the cattle side of things too much but it is going to affect the sheep side of things.”
Sean Lavery at an IFA meeting in the Irish Farm Cantre. \ Philip Doyle
Seán Lavery – IFA Limerick chair
“It’s like any reduction in competition, it’s never good for farmers. When you’ve one less player in the market, it’s going to affect price and there’s no real upside to it for farmers. Farmers need competition in the market.
“It’s hard to predict exactly how price will be affected, but already lamb price is facing downward pressure due to Australian lamb being dumped on the British market – that lamb is going to France where our lamb goes, so you have market displacement there because of that.
“When you’ve a very acceptable product for half the price, it might not be as good quality as ours, but it does upset the equilibrium.”
The Competition and Consumer Protection Authority (CCPC) last week cleared the way for Dawn Meats to buy Kildare Chilling.
The Irish Farmers Journal spoke to farmers about the takeover.
Beef and Sheep farmer Ronan Delaney, from Dunshaughlin.
Ronan Delaney – Dunshaughlin,
Co Meath
“It’ll be a big negative for producer groups who work off an average, Kildare Chilling were always out in front in terms of price.
“Irish Country Meats and Dawn Meats could be €6/kg whereas Kildare would be €6.10/kg. Kildare always kept the others on their toes.
“I suppose it’s a case of the big lads getting bigger and the independents getting out. The bottom line is that every bit of competition is important and this is going to reduce competition significantly.”
Flor McCarthy, centre, with Sean O'Donoghue, Teddy Creedon, Denis Halpin and Pat Dunne, Wicklow. \ Valerie O'Sullivan
Denis Halpin – Kildare IFA
sheep chair
“I am surprised that it [the acquisition] went ahead and to be honest, I’m very disappointed. Dawn Meats will have too much of the sheep kill now and there’ll be much less competition in the market.
“As bad as Kildare were they were always a small bit ahead price-wise. You’d be afraid that they’d stop the intake of lamb in Kildare altogether and increase intake in their Ballyhaunis plant.
“There’s a huge number of people employed there, so that’s worrying.”
Minister of State Pippa Hackett makes a presentation to Ken Matthews of the Offaly Lamb Producer Group. \ Odhran Ducie
Ken Matthews – Offaly lamb
producers group
“I don’t think it’ll be a good idea anyway, it will all depend on what they decide to do. They’re saying they’re going to spend €10m but which factory they’re going to spend that on is the question, either Ballyhaunis or Kildare.
“Will they decide to take all the sheep intake to one factory? If you take Kildare out of the area, it’ll be a serious blow to the midlands.
“Either way lamb price is going to be affected, you’ll now have a single quote even if they keep both factories in operation. I don’t think it’s going to affect the cattle side of things too much but it is going to affect the sheep side of things.”
Sean Lavery at an IFA meeting in the Irish Farm Cantre. \ Philip Doyle
Seán Lavery – IFA Limerick chair
“It’s like any reduction in competition, it’s never good for farmers. When you’ve one less player in the market, it’s going to affect price and there’s no real upside to it for farmers. Farmers need competition in the market.
“It’s hard to predict exactly how price will be affected, but already lamb price is facing downward pressure due to Australian lamb being dumped on the British market – that lamb is going to France where our lamb goes, so you have market displacement there because of that.
“When you’ve a very acceptable product for half the price, it might not be as good quality as ours, but it does upset the equilibrium.”
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