The Australian Competition and Consumer Commission will not oppose the acquisition and leasing of a number of NSW egg farms by Pace Farms Pty Ltd.
"Pace acquired and/or leased a significant number of egg farms in NSW over about nine months last year", ACCC Chairman, Professor Allan Fels, said today. "The matter was raised with the ACCC by other NSW egg producers.
"The ACCC decided to not to oppose the acquisitions because the barriers to entering the production and supply of shell eggs appear to be low since the removal of statutory barriers, such as quotas.
"Also many of the egg farm functions, such as grading and delivery, may be subcontracted out, thus reducing the capital costs required for new entry.
"It was also relevant to the Commission's decision that the NSW Egg Cooperative and Bartters are strong competitors in NSW.
"The ACCC will continue to monitor deregulation in the Australian egg industry on an informal basis. It is crucial that the Commission maintain a vigilant role in relation to deregulating industries to ensure that its goal, a competitive market, is achieved".