Concern about proposed takeover of Slaney Meats by ABP

There is a great deal of concern in the agricultural industry, especially among farmers, who are the primary producers, about the proposed takeover of Slaney Meats by ABP Food Group, Senator Pat O’Neill told the Upper House.

Such a development would place the latter in a dominant position in the market and that could be to the detriment of farmers, he said. “The matter I tabled asks the Minister whether he feels it would have a positive or negative effect on the future of agriculture in this country and whether he would make a submission to the Competition and Consumer Protection Commission. The Commission has been in correspondence with the Joint Oireachtas Committee on Agriculture, Food and the Marine, of which I am a member, on this matter. It said it cannot make a comment until the takeover goes ahead. I am concerned about the timing of the takeover. If it takes place within the next couple of weeks, during a general election, no Oireachtas Committee will be able to deal with it. The current Minister for Agriculture, Food and the Marine will be operating in an acting capacity. The takeover may, therefore, proceed without due scrutiny.”

If the ABP group takes over Slaney Meats, it will have 29% of the beef kill, 40% of the lamb kill and 50% of the rendering plants in the country, he siad. A big problem on the previous occasion was the rendering plants because rendering is a by-process which must be done. If the ABP group has 50%, it could lead to a lack of competition.

Replying on behalf of the Minister for Agriculture, Minister of State Joe McHugh said  the structure of the Irish beef processing sector has been the subject of much discussion over the years and one of the recurring themes has been the question of rationalisation in the processing industry to improve its efficiency.

“However, it is clear that any such rationalisation must avoid distorting competition within the sector,” he said. “That is why the process of examining this particular proposed takeover is of utmost importance. The process of the investigation by the relevant authorities is a detailed and robust one. Furthermore, the process is a transparent one, with, if this matter is notified to the EU Commission, details of any new notifications being published on the Commission's competition website. This will allow any interested parties to contact the Commission and to submit comments on the merger. There are also timelines laid down for the completion of the different stages of the investigation to ensure that the investigation is completed in as timely a manner as possible for the sake of all parties.”