ABP Food Group has agreed in principle to fully acquire Slaney Foods and Irish Country Meats (ICM) in the Republic and Linden Foods in Northern Ireland
ABP Food Group has agreed in principle to fully acquire Slaney Foods and Irish Country Meats (ICM) in the Republic and Linden Foods in Northern Ireland
Larry Goodman’s move to buy the remaining 50pc of Fane Valley Co-op’s red meat business has caused “huge concern” among farmers.
Last week the meat processing giant ABP Food Group announced that it has agreed in principle to fully acquire Slaney Foods and Irish Country Meats (ICM) in the Republic and Linden Foods in Northern Ireland, subject to approval by the relevant regulatory and competition authorities.
While the Competition and Consumer Protection Commission (CCPC) said it has not received any notification of a proposed transaction between ABP and Fane Valley, farm leaders are worried.
ICSA beef chair Edmund Graham said: “ICSA fundamentally disagreed with the original decision by the EU competition authorities to allow this takeover ever happen in the first place.
“The move serves only to compound the dominance of the three main processors, leaving farmers in an even more vulnerable position.
“It is now more important than ever that the application by Chinese investors to buy the Banagher plant is given the green light so they can provide much-needed competition in the Irish market.”
ICMSA president Pat McCormack said farmers will be hugely concerned by the removal of yet another element of competition for cattle.
“Farmers have no confidence in the ability of the regulatory regime in Ireland to recognise this fact and provide some level of protection for the primary producer,” he said.
“This move highlights the ongoing concentration at processor level that, in turn, duplicates the concentration at retail level... and the relentless manipulation of prices and margins.”
IFA president Tim Cullinan said the full takeover of Slaney Meats and ICM by ABP is a further erosion of competition.
“This consolidation of the buying power for livestock in the hands of a few has to be addressed by Minister for Agriculture Charlie McConalogue and the CPCC,” he said.
ABP Food Group said the Slaney, ICM and Linden businesses operated as an ABP/Fane Valley joint venture for the last five years.
“The businesses will continue to operate under their respective trading names for the foreseeable future and the sites will continue to operate as normal. The amount of the transaction is not disclosed.”
ABP CEO Frank Stephenson said: “This development is the direct result of our successful joint venture arrangement, which has enabled all parties to improve their offerings to customers and to compete more effectively nationally and internationally. The time is now right to build on this success.”