Unfair market practices within the beef processing sector need to be challenged rather than strengthened, according to Sinn Féin MEP Matt Carthy. Speaking on the IFA-commissioned report on the impact on competition, he said the proposed ABP-Slaney merger would be a step in the wrong direction.
“ This report confirms the concerns that I have repeatedly raised in both the European Parliament’s Agriculture Committee and with the Commission directly – that there is a clear unfair market dominance in the beef processing sector in Ireland preventing fair competition and fair pricing,” said Carthy. “It is by no means a far jump to conclude that the proposed merger would result in ABP-Slaney increasing significantly on their combined grip of the beef and sheep processing sectors beyond 26% and 40%. This merger would effectively isolate any remaining competitors and create a situation where it would be impossible for new meat processing businesses to enter the market.”
The Irish MEP claims that farmers will lose out with the proposed merger due to already weak competition.
“With such low prices at the primary end of the beef and sheep supply chains, Irish farmers are at risk of being cheated out of what is owed to them for premium products on export markets,” Carthy said. “This merger would result in an unworkable concentration of the market in Ireland, allowing just a few key players to dictate the terms of processing and export by Irish farmers.”
Irish MEPs Luke Ming Flanagan and Matt Carthy raised the issue of competition and unfair trade practices in the food chain with a representative of the European Commission's directorate general (DG) for competition in the European Parliament this week:
A 'damning analysis'
Fianna Fáil has described the report as “a damning analysis on the current level of competition in the beef sector”. The party's spokesperson on agriculture Charlie McConalogue said it raises significant questions regarding the merger.
“DG Competition needs to carefully examine this report in light of the proposed joint venture and the likely concentration of market power limiting competition in the Irish beef and sheep sectors,” McConalogue told the Irish Farmers Journal. “Minister Creed must clarify his position on this matter. We cannot have a situation where farmers continue to be price takers as opposed to price makers, particularly in the beef sector. Fair pricing and transparency in the food supply chain is vital.”
When asked to comment on the issue a spokesperson for Fine Gael said that it is "a matter for the European Commission".
Listen: IFA releases ABP-Slaney competition report