In our AgriBusiness section we report on the deal reached this week by Dawn Meats and Dunbia. Further concentration of the beef processing sector will always be a concern to farmers. It is a valid concern given the lack of transparency in the sector and margins at farm level. However, it has to be recognised that scale is essential if we are to stand any chance of growing our footprint in international markets. The merits of scaling a business with a strong track record in paying farmers should not be ignored. While further details of the deal are required to make a judgement, given what we have seen play out to date, it is unlikely the Competition Authority will disrupt plans. In light of this we should be looking to tackle the lack of transparency around margins, market prices relative to farmgate prices and weekly kill trends in each factory.
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In our AgriBusiness section we report on the deal reached this week by Dawn Meats and Dunbia. Further concentration of the beef processing sector will always be a concern to farmers. It is a valid concern given the lack of transparency in the sector and margins at farm level. However, it has to be recognised that scale is essential if we are to stand any chance of growing our footprint in international markets. The merits of scaling a business with a strong track record in paying farmers should not be ignored. While further details of the deal are required to make a judgement, given what we have seen play out to date, it is unlikely the Competition Authority will disrupt plans. In light of this we should be looking to tackle the lack of transparency around margins, market prices relative to farmgate prices and weekly kill trends in each factory.
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