The proposed ABP takeover of the Allen share of Slaney, as revealed by the Irish Farmers Journal, has attracted attention and concern.

The IFA registered its concern and was in contact with the Competition and Consumer Protection Commission last week on farmer concerns regarding competition and dominance on beef processing and rendering.

Livestock chairman Henry Burns explained that farmers have real concerns on competition and over-dominance in the meat processing and rendering sector, and this has come to the fore again in recent days with the ABP investment in Slaney Foods and new speculation regarding Dunbia.

Rationalisation

Whatever the concerns about share of the cattle and sheep kill, the rationalisation becomes even more pronounced in the rendering sector. At present, there are four operators in the Category 3 rendering sector: Western Proteins (controlled by Dawn), College Proteins, Slaney Proteins and ABP Proteins.

An ABP buy into Slaney gives it half ownership and insight into the Slaney business, effectively taking one of the players out. It becomes most pronounced in the sheep meat sector through the acquisition of ICM, which has approximately 40% of the national sheep kill.

MEP Mairead McGuinness, vice-president of the European Parliament, announced on Tuesday this week that ABP has yet to notify the Commission of its intention to acquire a 50% stake in Slaney Foods. The CCPC confirmed this to the Irish Farmers Journal on the same afternoon.

ABP has also confirmed this, saying that “last Thursday week we announced our intention to enter into a 50:50 joint venture with Linden Food Group in respect of Slaney Foods. The details are being worked through and once agreed will be forwarded by both parties to the relevant competition authority at the appropriate time.”