JBS Rivalea: An early decision for the future of Rivalea Holdings

The ACCC is expected to make a decision today on JBS Australia’s proposed purchase of Rivalea Holdings. But small scale producers remain fearful of the sale.

Former academic vegetarian turned pig farmer and butcher Tammi Jonas, who has concerns for the proposed purchased of Rivalea Holdings by Brazilian-owned JBS Australia.

Small-scale producers such as Daylesford’s Tammi Jonas are waiting with bated breath to hear whether global red meat giant JBS will snap up yet another Australian business, with an announcement due on December 2.

If the Australian Competition and Consumer Commission allows JBS Australia to buy 100 per cent of Rivalea Holdings Pty Ltd, along with 100 per cent of Oxdale Dairy Enterprise Pty Ltd at a combined value of $175 million, Ms Jonas is sceptical that smaller producers will continue to have access to kill services at Rivalea’s Victorian abattoir.

The Jonas family runs Jonai Farms and Meatsmiths, raising heritage-breed Large Black pigs and Speckleline cattle at Eganstown, near Daylesford.

Former academic vegetarian turned pig farmer and butcher Tammi Jonas, who has concerns for the proposed purchased of Rivalea Holdings by Brazilian-owned JBS Australia.

They process their pigs at Rivalea’s Diamond Valley abattoir, then butcher the carcasses on farm, selling at the farmgate and through a direct-to-consumer subscription model.

The news of JBS Australia’s proposed acquisition was the catalyst for the family to begin construction of an on-farm micro abattoir to process their own and other local producers’ pigs.

Ms Jonas said she was sceptical of assurances by JBS Australia that small-scale producers would continue to have access to Diamond Valley abattoir’s services.

“I don’t buy it,” Ms Jonas said. “They have made personal assurances, but I wouldn’t trust their assurances. They’ve said that they’re not the bad guys, but we’re not in a fairy tale.

“I give them a year before they start stopping small producers from using facilities.”

A spokesman for JBS said small-scale service-kill producers would continue to have access to Rivalea’s Diamond Valley facility.

“JBS has repeatedly and publicly said it will continue to provide kill services at DVP and we have provided, through the sale and regulatory approval process, these assurances in writing to all existing DVP service kill customers and also the ACCC,” the spokesman said.