UK watchdog sounds alarm on Boparan’s poultry feed mill takeover from ForFarmers

UK – The UK’s Competition and Markets Authority (CMA) has raised concerns about Boparan Holdings’ intended acquisition of two agricultural feed mills from the Dutch company ForFarmers, specifically scrutinising the impact of the Burston mill purchase. 

This move by Boparan, which owns the UK’s largest poultry company, 2 Sisters Food Group, has triggered regulatory alarms over competition in the poultry feed supply sector in East Anglia. 

According to a Phase 1 investigation by the CMA, the deal could reduce competition, potentially leading to higher feed costs for local poultry producers, which may ultimately raise prices for consumers.

The CMA’s concerns are largely tied to Boparan’s significant presence in the region, where 2Agriculture, its feed supply subsidiary, already serves a broad network across Scotland, East Anglia, and North Wales. 

The acquisition of ForFarmers’ Burston feed mill could provide Boparan with enhanced market control, giving it the power to disadvantage rival poultry producers by increasing costs or reducing service quality for independent farmers in the area. 

“We’re concerned that this deal could worsen competition between poultry feed suppliers in East Anglia—leading to higher costs for farmers, which could then be passed down to shoppers,” remarked Joel Bamford, the CMA’s executive director of mergers.

This regulatory scrutiny is not new for Boparan and ForFarmers. In 2022, the CMA examined a proposed joint venture between the two companies, raising similar competition concerns over four feed mills across the UK. 

The proposal was ultimately abandoned when the investigation entered an advanced Phase 2 review. 

Undeterred, Boparan went on to purchase two of ForFarmers’ UK feed mills in Burston and Radstock, with the CMA noting that the Radstock mill did not raise any competitive concerns.

As Boparan seeks to expand its market share, independent poultry producers are wary of the potential impacts on feed accessibility and cost stability. 

If Boparan and ForFarmers fail to propose adequate remedies to address these competition issues within five working days, the CMA will proceed to a more comprehensive Phase 2 investigation, which could delay or complicate the acquisition.

The outcome of this regulatory probe holds significant implications for the UK poultry market, where any disruption to feed supply can affect production costs and ultimately consumer prices. 

This level of scrutiny underscores the CMA’s commitment to maintaining fair competition within the agricultural supply chain, ensuring that smaller producers retain access to affordable, high-quality feed.

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World and follow us on our WhatsApp channel for updates.