The Australian Competition and Client Commission (ACCC) has outlined its “sturdy” issues about the proposed $175 million takeover of pork farming and processing alternate, Rivalea Holdings.
- The ACCC has “sturdy” issues about JBS taking on Rivalea pig operations and its meat processing
- It would give JBS retain watch over of three of the four export pork abattoirs in southern Australia
- JBS says it intends to present a total response to the ACCC at some stage in this next segment of public consultation
The takeover represents a prime eradicate for JBS, which is the enviornment’s ideal meat processor.
The Brazilian-essentially based firm employs bigger than 11,000 of us in Australia and conducts bigger than a quarter of the nation’s meat homicide.
If it gets the inexperienced gentle to eradicate Rivalea, JBS would have retain watch over of three of the four export pork abattoirs in southern Australia.
JBS already owns a pig abattoir at Port Wakefield in South Australia and would utilize up the two export-accredited abattoirs at Corowa, in southern Novel South Wales, and Victoria’s ideal pig abattoir, Diamond Valley Pork at Laverton, shut to Melbourne, which has the skill to project 13,500 pigs per week.
“So with those three abattoirs they could be in a certainly sturdy achieve when it comes to the current of carrier kills in south-eastern Australia,” ACCC deputy chair Mick Keogh acknowledged.
“And after we add to that the possession of Primo, which has a certainly sturdy achieve within the smallgoods market, that creates some issues across the extent to which those vertical arrangements could be used to disadvantage other competitors … who must source their quiet pork thru one in every of their abattoirs,” he acknowledged.
Takeover could push pork prices higher
The ACCC acknowledged the eradicate of Rivalea could give JBS incentive to frustrate carrier kills by increasing prices, offering much less truly helpful phrases, or foreclosing entry.
“That will per chance drift thru to retail if, as an instance, there was as soon as a substantial stamp magnify imposed on the uses of those amenities,” Mr Keogh acknowledged.
“So the processors would potentially face higher prices thru the slaughter amenities and that, in turn, would must translate into higher prices at retail and that’s the narrate,” he acknowledged.
JBS defends takeover
In an announcement, JBS Australia acknowledged the ACCC’s points of narrate around third occasion processing at Diamond Valley Pork (DVP) and entry to quiet pork for downstream companies.
“JBS intends to present a total response to the ACCC referring to these matters at some stage in this next segment of public consultation,” JBS Australia CEO Brent Eastwood acknowledged.
“JBS has frequently and publicly acknowledged this may continue to present carrier kills at DVP and we have gotten supplied these assurances in writing to all existing DVP prospects and the ACCC,” Mr Eastwood acknowledged in an announcement.
The ACCC is due to release its closing resolution on December 9, 2021.