UK competition watchdog says ForFarmers-Boparan JV could trigger higher costs for farmers (updated)

ForFarmers NV

21/12/2022 07:55

(Adds CMA director comment, background)
       Dec 21 (Reuters) - UK competition watchdog said on
Wednesday the potential joint venture between Dutch animal feed
maker ForFarmers  FFARM.AS   and British firm Boparan could lead
to farmers paying higher prices to feed poultry.
    "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," Sorcha O'Carroll, senior director of mergers at the
Competition and Markets Authority (CMA) said in a statement.
        ForFarmers UK, a unit of Amsterdam-listed ForFarmers NV,
and 2Agriculture, a British firm owned by holding company
Boparan Private Office, in July 
    agreed
     to merge their businesses in the UK into a joint venture.
  
        The deal raised competition concerns in four local areas
across East Anglia, north-western England and North Wales, the
CMA said after Phase 1 probe, and warned these areas could see
higher prices for poultry feed, lower quality feed or worse
quality of service.
  
        The CMA said it was also concerned that the JV could
unfairly favour Boparan's chicken farming and processing
businesses. 
  
 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Eileen Soreng)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692))