DEAR SIR:
The news that Dawn Meats is to become the biggest beef processor in the UK following its joint venture with Dunbia is not welcome for Irish farmers, as it will mean the entire beef and sheepmeat processing industry will be controlled by just a few operators, thus creating a monopoly in the industry and almost eliminating competition. This would appear to have the inevitable consequence of affecting farmers’ incomes, while the processors reap the benefits of such a move.
Last year, ABP took over Slaney Meats, leading to the present situation where two processors control over 51% of the beef and sheepmeat processing industry. As time goes on with possible future mergers or takeovers, there will be less and less competition in the industry, which is not a positive development for farmers, more especially for smaller farmers trying to get the best return for their efforts.
We continually hear from Government in other situations that monopolies cannot be allowed to develop, but it appears that the EU is turning a blind eye to this latest development. In that respect, it ought to be considered rather ironic that the EU would not allow Ryanair take over Aer Lingus a couple of years ago as they deemed it would not be good for competition, yet they are not seemingly applying the same rules to the agricultural sector.
We already see how supermarket multiples have a monopoly over various areas of agricultural produce in this country where they engage in price wars and other tactics while they continue to retain their profit margins regardless of what happens, where those profits are not shared with the producer.
These monopolies in the agricultural processing and retail industries will have the inevitable effect of affecting farm incomes, presently and into the future.
SHARING OPTIONS: