Rendering under scrutiny

THE ANIMAL waste rendering industry is to come under scrutiny from competition watchdogs again.

The Office of Fair Trading has decided to review the promises made by Prosper de Mulder and William Forrest in 1995 after an investigation highlighted abusive price practices.

The two companies dominate Britain‘s animal waste rendering trade, taking bone, blood, offal and other waste from abattoirs and butchers to turn into chemicals, oil and pet food.

PDM alone posted a turnover of £254m in 2003.

Douglas Scott, chief executive of the Scottish Federation of Meat Traders, said his members pay £25 for William Forrest to collect each wheelie bin of waste.

“We rely on William Forrest in central Scotland to collect animal waste and bones from butchers‘ shops.

“But that service comes from just one company, which makes us feel very vulnerable, and it’s hard to be sure you are getting a fair price.

“I suppose we’ll have to wait for the government to get to the truth of the matter.”

At the time of the original investigation, PDM was found to operate discriminatory pricing through a virtual monopoly of rendering services in England and Wales.

There were also concerns about its accounting procedures.

William Forrest, on the other hand, was found to be charging too much and on an uneven basis in its stamping ground north of the Border.

The review has not been triggered by any specific concerns and is part of the OFT‘s rolling review programme, a spokeswoman said.

It should be complete by the end of 2005.