UK watchdog the Competition and Markets Authority said on Wednesday that ForFarmers and Boparan’s planned joint venture raised competition concerns where it could lead to higher prices for poultry feed, lower quality feed, or worse quality of service.
The CMA stated that the combination of ForFarmers and Boparan’s animal feed milling operations could present competition concerns in four local areas across East Anglia, north-western England, and North Wales.
While both businesses currently compete for customers within each of these local areas, the CMA said it was concerned that the combined business would not face “sufficient competition” after the merger.
The CMA also said it was worried that the joint venture could “unfairly favour” Boparan’s chicken farming and processing businesses, resulting in less choice for smaller chicken farmers and processors, who might rely on ForFarmers and Boparan for their chicken feed.
Sorcha O’Carroll, the CMA’s senior director of mergers, said: “Feed is the biggest expense faced by farmers when rearing chicken, the UK’s favourite meat.
“With food prices already increasing and the wider cost of living crisis, it is vital that we don’t allow a reduction in competition between poultry feed suppliers, which could make this situation worse – both for farmers and shoppers at the check-out.”
ForFarmers and Boparan now have five working days to submit proposals to address the CMA’s concerns. If the pair fail to submit “suitable proposals”, the CMA will progress to an in-depth Phase 2 investigation.
Reporting by Iain Gilbert at Sharecast.com
