ForFarmers and 2Agriculture merger faces in-depth investigation
© Tim Scrivener The Competition and Markets Authority (CMA) has announced it will investigate further the joint venture between agricultural suppliers ForFarmers UK and 2 Agriculture.
The two businesses combined operate 19 mills producing poultry and livestock feed in the UK.
Major poultry feed supplier 2Agriculture is a subsidiary of Boparan, while ForFarmers is a Dutch-owned animal feed supplier.
See also: Competition issues identified with ForFarmers and 2Agriculture merger
The CMA said the merger may be expected to result in a substantial lessening of competition within UK markets, based on current information available.
Phase one of the inquiry was launched in October 2022 and established the companies were planning on combining both of their animal feed milling operations.
The first phase also found that a merger of the two businesses could potentially lead to foreclosure of smaller poultry producers in specific local areas.
A second phase of the inquiry will run from 9 January until a deadline of 25 June 2023.
Sorcha O’Carroll, CMA senior director of mergers said: “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.”