Page 6 - Australian Pork Newspaper

While there’s been no suggestion anyone has spoken with a forked tongue, nego- tiations with a significant endgame may play out hard until the bitter end.
How Australian fresh pork production and smallgoods manufacturing is ultimately carved up is a matter of how
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Page 6 – Australian Pork Newspaper, November 2021
www.porknews.com.au
the ACCC views the proposed JBS acquisition of Rivalea.
Time ticking for pork takeover
WITH the Australian Competition and Con- sumer Commission set- tling on December 9 as the date for publicly an- nouncing its final view on the proposed $175 million acquisition of Rivalea by JBS, there’s only a month to go.
itably increasing the price of, offering less favourable terms for, or foreclosing access to third party ser- vice kills at DVP.
Cant
Comment
by BRENDON CANT
In its September 16 state- ment of issues, the ACCC delved into its preliminary views on any competition issues arising from the proposed acquisition, plus where it deemed further inquiry might be called for.
dwellers’ have come to the party and made their thoughts known.
producers and pork whole- salers.
JBS’s significant down- stream presence – in- cluding the wholesale supply of fresh pork and smallgoods – means that it may have the incentive to operate DVP in a more discriminatory manner relative to how Rivalea currently runs it.
Since then, and having invited interested par- ties to put forward com- ments and information to assist its assessment of the issues, one can as- sume plenty of key stake- holders and maybe even a handful of industry ‘fringe
Two key issues flagged by the ACCC as pos- sibly raising concerns are frustration or foreclosure of access to third party service kills at Diamond Valley Pork, majority owned by Rivalea, and concern about access to fresh pork for smallgoods
Via its Primo business, JBS is the largest small- goods producer in Aus- tralia and a wholesaler of fresh pork.
This reduction in service kills may in turn result in a substantial lessening of competition in related upstream markets.
The ACCC has ex- pressed concerns that the proposed acquisition may lessen the supply of ser- vice kills by enabling JBS to frustrate access by prof-
Pig producers need to access service kills con- sistently – on a weekly basis and on the days they require the kills to take place.
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