A deal that sees Dawn Meats securing a 65% stake in New Zealand’s largest meat processor is bad news for Irish sheep farmers, the Irish Cattle and Sheep Farmers’ Association (ICSA) has said.

Speaking following the announcement on Monday that Dawn would take a majority stake in Alliance Group, ICSA sheep chair Willie Shaw said he believes the deal will impact the price paid to Irish farmers.

“This deal confirms everything we were worried about when we first heard it was on the cards. Dawn Meats has been very clear that its aim is to create a year-round supply of lamb between the northern and southern hemispheres.

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“That might sound good in a boardroom, but it’s bad news for Irish farmers who depend on seasonal markets and fair prices,” he said.

Shaw added that every extra shipment of New Zealand lamb going into EU and UK supermarkets means tougher competition for Irish farmers.

“There’s only so much shelf space and only so much demand. If Dawn fills that space with New Zealand lamb when Irish farmers are selling, it will drive down prices here at home. That’s the reality.

“It is very disappointing that an Irish company built on the backs of Irish farmers is now using its profits to buy into New Zealand production instead of backing local suppliers.

“This deal will give Dawn Meats control over the biggest sheepmeat exporter in New Zealand, exporting to 65 countries. That gives them huge global power – and Irish farmers will be the ones squeezed,” he said.

‘Capital injections and special dividend payments’

New Zealand farmer-shareholders will now benefit from new capital injections and special dividend payments, the sheep chair stated, while Irish sheep farmers continue to face stagnant prices and rising costs.

“It tells you where Dawn’s priorities lie. They’re looking after farmers in New Zealand, not the ones who kept them going for decades here in Ireland,” he said.

Shaw reiterated his organisation’s call on Minister for Agriculture Martin Heydon and the European Commission to examine the implications of the deal.

“We need to make sure Irish and European producers are not undercut by imported lamb that’s part of this so-called ‘year-round supply’. There must be safeguards so that Irish farmers are not the losers from corporate deals like this,” he added.