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E brendon@iinet.net.au
If the acquisition pro- ceeds, JBS will have a significant presence in pig farming, export ac- credited pig abattoirs and smallgoods through its Primo brand.
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“We look forward to making a submission to the ACCC and encourage others who share our concerns about JBS’s in- creased market power to do the same.”
The ACCC published a statement of issues and is seeking further infor- mation from interested
“And that’s what the ACCC will ensure in any determination that can be provided into the future.”
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ACCC concerned about JBS buying Rivalea
Cant Comment
by BRENDON CANT
THE Australian Com- petition and Consumer Commission has now outlined its preliminary competition concerns about JBS Australia Pty Ltd’s proposed acquisi- tion of Rivalea Hold- ings Pty Ltd and Ox- dale Dairy Enterprise Pty Ltd – together Ri- valea – in a statement of issues it published on September 16.
producers and pork wholesalers.
parties by September 30, 2021.
In my August column I wrote that it was pre- dictable that the JBS acquisition of Rivalea, announced on June 8 by Rivalea owner QAF, was now subject to the ACCC and Foreign Investment Review Board’s determi- nations before the $175 million bid could proceed.
NSW meat wholesaler BE Campbell – family owned since 1969 – was the unsuccessful bidder, and it had pre-approval from the ACCC for the purchase.
Mick Keogh said: “The ACCC’s preliminary view is that while JBS and Rivalea do not compete closely, the proposed ac- quisition may give rise to vertical integration con- cerns.”
“We are concerned that JBS’ existing interests may give it the incen- tive to restrict access to service kills at the Dia- mond Valley Pork abat- toir, as well as frustrate access to fresh pork for its downstream rivals in smallgoods production and pork wholesaling,” Mr Keogh said.
“So that’s why it is good to have competition.
Responding on Sep- tember 16 to the ACCC’s statement that day, man- aging director Ted Camp- bell expressed the com- pany’s appreciation that the ACCC had recognised competition concerns in the proposed acquisition.
Rivalea’ s Diamond Valley Pork abattoir cur- rently provides service kills to third parties.
“Our concern is not limited to JBS potentially denying access to pro- cessing facilities, it’s also about the price and terms on which access would be provided.”
“It gives our producers the opportunity to send their product into com- petitors as quickly and as effectively as they can.
“We welcome the AC- CC’s decision to continue to investigate the potential negative impact on com- petition in the Australian pork industry should the JBS deal proceed,” Mr Campbell said.
The ACCC is concerned that post-acquisition JBS may have the incen- tive, particularly due to its ownership of Primo, to frustrate service kills at that abattoir by in- creasing prices, offering less favourable terms or foreclosing access.
The ACCC believes the proposed acquisition is unlikely to raise hori- zontal overlap concerns in relation to the acquisi- tion of slaughter weight pigs, supply of service kills or pork processing, as JBS and Rivalea do not compete closely.
“I want to make sure our producers have opportuni- ties to spread their risks, to use as many markets as they can to get the fairest price that they want.
Below is the ACCC’s September 16 statement of issues.
JBS is Australia’s largest meat and food processing company.
Rivalea farms and pro- cesses pigs.
ACCC deputy chair
The ACCC is also con- cerned that JBS may in- crease the price of fresh pork or reduce supply to competing smallgoods
“Farmers don’t want charity – they just want a fair price, they want a fair market.
The ACCC is con- sidering whether rival smallgoods producers and wholesalers’ reduced access to fresh pork or increased costs may also impact retail supply.
When questioned on ABC Victoria Country Hour on September 22 about the possible market competition ramifications of the JBS takeover of Ri- valea, Federal Agriculture Minister David Little- proud said, “We see in the supermarket space, where we’ve got two or three big players – they are control- ling a lot of the market with respect to groceries and that hasn’t been, in my mind, all that good for particularly primary producers in the past.”
ACCC has a lot to go through in determining if JBS is to be the successful bidder for Rivalea and who will be left behind.
APL 2021 webinar series
AUSTRALIAN Pork Limited is hosting a series of webinars in October to update on current industry pro- jects and priorities for the future.
All producers and in- dustry stakeholders are welcome, with topics covered informing dis- cussions with APL del- egates in November.
The webinars include:
Emergency animal disease preparedness
On-farm biosecurity planning and traceability – Wednesday October 13 from 3-5pm.
Driving innovation
sions will be recorded and shared post event to provide maximum flex- ibility and accessibility for attendees.
Valuable provenance
New research and in- novation portfolios, research extension and adoption – Friday Oc- tober 15 from 3-5pm. Registration
APL’s sustainability framework – results of the Adelaide smallgoods trial and country of origin labelling update – Thursday October 14 from 3-5pm.
We encourage at- tendees to join all three webinars, however ses-
To register, visit aus tralianpork.com.au/ events or email events@ australianpork.com.au