ICSA criticises Dawn Meats' Alliance Group acquisition
Dawn Meats expand. Istock
The Irish Cattle & Sheep Farmers’ Association (ISCA) has strongly criticised Dawn Meats’ acquisition of New Zealand’s Alliance Group, labelling the move as “bad news for Irish farmers.”
Dawn Meats, a Waterford-based red-meat processing company, edged closer to securing a majority stake in Alliance Group on Monday, with shareholders approving Dawn Meats’ move to acquire 65% of the shares of the New Zealand Co-Op.
Alliance Group is New Zealand’s largest exporter of sheep meat.
ISCA sheep chair Willie Shaw has said Dawn Meats’ acquisition and ability to sell sheep meat for 12 months of the year will undercut Irish farmers.
“This deal confirms everything we were worried about when we first heard it was on the cards. Dawn Meats has been very clear that its aim is to create a year-round supply of lamb between the northern and southern hemispheres,” Shaw said.
“That might sound good in a boardroom, but it’s bad news for Irish farmers who depend on seasonal markets and fair prices,” he said.
Shaw said the introduction of New Zealand lamb will saturate Irish markets, driving prices down and harming Irish farmers.
“It is very disappointing that an Irish company built on the backs of Irish farmers is now using its profits to buy into New Zealand production instead of backing local suppliers. This deal will give Dawn Meats control over the biggest sheep meat exporter in New Zealand, exporting to 65 countries. That gives them huge global power - and Irish farmers will be the ones squeezed.
“It tells you where Dawn’s priorities lie. They’re looking after farmers in New Zealand, not the ones who kept them going for decades here in Ireland.”
The ICSA issued a call to Minister for Agriculture Martin Heydon and the European Commission to examine the implications of the deal.
“We need to make sure Irish and European producers are not undercut by imported lamb that’s part of this so-called ‘year-round supply’. There must be safeguards so that Irish farmers are not the losers from corporate deals like this,” Shaw said.
