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Australian Competition and Consumer Commission Merger Investigations general manager Daniel McCracken-Hewson has written to interested parties, seeking their views.
"The ACCC's investigation is focused on the impact on competition," Mr McCracken-Hewson said.
In particular, the ACCC is seeking input on:
- whether Rivalea and JBS compete closely in pig slaughtering/service kills, processing (boning and value-adding services) and distribution of pork products; and
- the impact of the proposed acquisition on: prices for slaughter weight pigs, availability of pig slaughtering services/service kills, and of the production and sale of fresh pork, value-added pork and pork smallgoods products."
Small scale pig producers have expressed concern about the potential acquisition, although the Victorian Farmers Federation believes it would be good for the industry.
JBS operates ten processing facilities, as well as value-add operations and feedlots for a number of species across Australia's eastern seaboard.
Its Port Wakefield, SA, facility supplies pig slaughtering/service kill services, as well as further processing (boning and value-adding) services.
JBS also supplies fresh pork, value-added pork, pork smallgoods and cooked pork products in Australia.
The ACCC said Rivalea was a vertically integrated pork production company with commercial activities in feedstock production, pig production farming, pig slaughtering/service kills, processing services and the distribution of fresh pork and value-added pork products to wholesalers and retailers in Australia.
"Rivalea owns one pig slaughter and processing facility located in Corowa, New South Wales, and holds an 80 per cent interest in Diamond Valley Pork Pty Ltd, which owns a pig slaughter and processing facility located in Laverton, Victoria. the Diamond Valley Pork facility," Mr McCracken-Hewson said.
"Rivalea supplies live pigs and fresh and value-added pork products, including those processed at the Diamond Valley Pork facility and Corowa, to major supermarkets, wholesalers and distributors.
"Rivalea's fresh pork brands include Murray Valley Pork, St Bernard's Free Range, Family Chef and Riverview Farms. Rivalea also exports pork products to certain Asian trading countries."
"The legal test which the ACCC applies in considering the proposed acquisition is in section 50 of the Competition and Consumer Act 2010," Mr McCracken-Hewson said.
"Section 50 prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market."
Submissions close on July 16, 2021.
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
