Supply Chain

ForFarmers-Boparan JV Could Trigger Higher Costs For Farmers

By Steve Wynne-Jones
Share this article

The UK competition watchdog has said that the potential joint venture between Dutch animal feed maker ForFarmers 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.

Joint Venture Plans

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.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days

Copyright © 2023. All rights reserved. Developed by Square1 and powered by PublisherPlus.com