The Irish Farmers’ Association (IFA) has called on the Competition and Consumer Protection Commission (CCPC) to thoroughly examine the impact of the proposed sale of Kildare Chilling on the cattle and sheep processing sector.
The comments come as it is understood that Dawn Meats is set to purchase the meat processing plant.
The deal will have to go through the statutory checks by the CCPC before being finalised.
Although the deal has not yet been formally announced, Agriland understands that this is expected imminently.
CCPC
IFA president Tim Cullinan said that the CCPC has a critical role to play in determining how further consolidation of the cattle and sheep processing sector will impact on competition within the industry for farmers.
He said that this purchase would remove another significant standalone meat plant in the country.
The association has previously highlighted the impact of the contraction of processing competition on farmers.
“Kildare Chilling as a standalone processing factory for cattle and sheep offers vital competition for farmers selling cattle and sheep.
“The CCPC must investigate thoroughly the impact this will have for competition in cattle and sheep processing, taking into consideration consolidation of processing that has occurred in this region in recent years, in particular the ABP/Slaney/ICM alignment.
“The CCPC must ensure maximum competition in the processing of cattle and sheep continues to be provided. Any venture that impacts on this must be rejected,” Cullinan said.
Kildare Chilling is one of the main sheep processors in the country, accounting for around 20% of the national sheep throughput.
Its plant is located in Kildare town, adjacent to the M7 motorway.
The slaughter halls at Kildare Chilling Co. have the capacity to kill 120,000 cattle and 500,000 lambs per annum.