The deal will lead to further consolidation of Ireland’s meat processing industry
Farmers and Farm organisations have raised concerns following revelations that Dawn Meats is to acquire Kildare Chilling.
Waterford based Dawn Meats is understood to be in the process of buying rival beef and lamb processor Kildare Chilling.
However, the details have yet to be announced, both sides are said to have reached a deal.
Family-owned Kildare Chilling is one of the main sheep processors in the State, accounting for about 20% of lamb processing. It employs roughly 350 people and had a turnover €140 million in 2021.
A tie-up with Dawn, which will need to be cleared by the Competition and Consumer Protection Commission, will further consolidate the processing industry here.
Farmers’ representatives reacted negatively to news of the deal, suggesting it would decrease competition in the industry.
Irish Cattle & Sheep Farmers' Association president Dermot Kelleher has written to the EU Commissioner for Competition Margrethe Vestager to outline his concerns over the mooted sale of Kildare Chilling to Dawn Meats.
“There is precious little competition in the meat processing sector here and the loss of independence of this important outlet for cattle and sheep farmers will have a big impact,” he said.
Mr Kelleher has asked Commissioner Vestager to examine whether the proposed purchase of Kildare Chilling by Dawn Meats is compatible with ensuring sufficient competition in the primary procurement markets for supplies of cattle and sheep.
“ICSA has serious misgivings about any further weakening of competition in the beef and sheep processing sectors. The removal of Kildare Chilling will serve only to consolidate the position and power of the big three, namely: ABP, Kepak, and Dawn Meats.”
“Maintaining competition is key to the survival of primary producers up and down the country. Kildare Chilling is regularly a leader when it comes to lamb prices and plays a critical role in keeping significant volumes of lamb out of the control of big processors.
"For the sake of protecting any sort of genuine competition we cannot afford to lose important outlets like Kildare Chilling," he added.
Darren Carty, Sheep and Schemes Editor, Irish Farmers Journal spoke with Eoin Beatty on Kildare Today, listen back to the full interview here:
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