The Australian Competition and Consumer Commission will oppose a proposed joint venture between Farm Pride Foods Limited and Pace Farms Pty Limited in relation to their egg product business, acting ACCC Chairman, Mr Ross Jones, announced today.
FPF and Pace are both involved in the production, grading, packing and distribution of shell eggs and the manufacture of egg products.
Egg product, which may be in liquid or dried form, is made from second-grade eggs and is used mostly in the food processing and food services industries.
The ACCC is concerned that the proposed egg product joint venture between FPF and Pace would be likely to result in a substantial lessening of competition in that market.
The proposed egg product joint venture will result in FPF and Pace together accounting for over half of that market. The ACCC is concerned that neither imports nor existing competitors will provide a sufficient competitive constraint on the joint venture.
The ACCC conducted extensive market inquiries into the proposed arrangement, consulting with food manufacturers and wholesalers as well as industry groups and competitors. Concern emerged from several quarters during these inquiries that the joint venture would substantially lessen competition.