The beef chair of the Irish Cattle and Sheep Farmers’ Association (ICSA), Edmund Graham, has said the takeover of Kildare Chilling by Dawn Meats “will not be a good outcome for farmers”.
The Competition and Consumer Protection Commission (CCPC) has confirmed that it will clear the acquisition of Kildare Chilling Company by Dawn Meats.
Graham said: “Farmers have lost all faith in the CCPC which has nodded through this takeover.”
The CCPC’s decision follows a two-phase investigation process, which started in February of this year and included the opportunity for third parties to make submissions and to engage with the CCPC.
Graham said: “The reality is that a factory that many farmers depended on to sell cattle and lambs at a fair price, is now under the control of one of the big two.
“This will not be a good outcome for farmers.
“Kildare Chilling was a good outlet for all sorts of livestock, particularly at times when suppliers were on the back foot with livestock that did not fit a narrow spec.
“Our concern is that the consequence is that farmers will be left with even less choice.”
The CCPC said: “Following detailed examination of the evidence available, it is apparent to the CCPC that there will remain a sufficient number of competitors in each of the potential markets considered, and that Dawn Meats and Kildare Chilling are not particularly close competitors in any of these potential markets.
“As a result, the CCPC has determined that the proposed acquisition will not substantially lessen competition and can be put into effect,” the CCPC added.
Impact of the deal
Graham is calling on the new Agri-Food Regulator (An Rialálaí Agraibhia), whose role it is to promote fairness and transparency in the agricultural and food supply chain, to “monitor the impact this deal has”.
“ICSA will also want to see the EU country-by-country reporting (CbCR) directive implemented properly in this country which aims to bring transparency to the financial statements of big businesses with turnover in excess of €750 million,” he added.
“For too long, large corporations including the big players in the meat processing sector have hidden behind unlimited liability status.
“This is not good enough for companies that essentially control the meat on the shelves.”