Dawn Meats NZ deal 'bad news for Irish sheep farmers' - ICSA
An Irish farm organisation has said that confirmation of Dawn Meats' acquisition of the 65% stake in a New Zealand lamb processor is "bad news" for Irish sheep farmers.
Agriland reported yesterday (Monday, October 20) that farmer-shareholders of the meat processor Alliance Group have voted in favour of a proposed NZ$270 million strategic partnership with Dawn Meats.
The result means Dawn Meats will now proceed to acquire a 65% shareholding in Alliance Group, with farmer-shareholders retaining a 35% stake.
Reacting to the deal, the Irish Cattle and Sheep Farmers' Association (ICSA) said: "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," ICSA sheep chairperson Willie Shaw claimed.
"That might sound good in a boardroom, but it's bad news for Irish farmers who depend on seasonal markets and fair prices," he added.
Shaw claimed that "every extra shipment of New Zealand lamb going into EU and UK markets means tougher competition for Irish producers".
"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," he claimed.
"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. This gives them huge global power and Irish farmers will be the ones squeezed," Shaw said.
The ICSA sheep chair said that the New Zealand farmer shareholders of Alliance Group will "now benefit from new capital injections and special dividend payments, while Irish sheep farmers continue to face stagnant prices and rising costs".
Shaw called on Minister for Agriculture, Food and the Marine 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 said.
Dawn Meats
Commenting the deal, Niall Browne, chief executive of Dawn Meats said: “We are pleased and excited by the outcome of the vote by Alliance’s farmer-shareholders and we now look forward to maximising the potential of the new opportunities this strategic partnership will unlock in the future for both Dawn Meats and Alliance.
"Following an extensive engagement and due diligence process, Dawn Meats put forward a strong strategic partnership proposal involving a significant investment in a world-class company that shares our values, ambition and commitment," Browne added.
