Poultry feed deal fuels competition concerns

Boparan’s proposed purchase of ForFarmers’ Burston feed mill site could lead to competition concerns in East Anglia according to the Competition and Markets Authority (CMA).

The CMA’s Phase 1 investigation found that the deal could lead to reduced competition in the local area around Burston – one of the two feed mill sites Boparan is seeking to purchase from ForFarmers. 

Boparan would have the ability and incentive to harm rival poultry meat producers, leading to higher poultry feed costs for chicken farmers and processors which could be ultimately passed to retailers and consumers.  

Both ForFarmers and Boparan (owner of Birmingham-based 2 Sisters Food Group) manufacture and supply chicken and other types of poultry feed in the UK.

The firms were planning to combine their 19 animal feed milling operations in a joint venture, but the proposed merger was abandoned in February 2023, following another investigation by the CMA.

ForFarmers and Boparan have five working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the CMA will progress to an in-depth Phase 2 investigation.

Joel Bamford, executive director of mergers at the CMA said: “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.  

“It’s now up to the companies to offer solutions to address our concerns and avoid the deal moving to a full Phase 2 investigation.”