Rivalea Holdings: JBS allays concerns over pork processing access
JBS Australia’s proposed purchase of Rivalea Holdings has generated industry concern. But the company has rushed to reassure producers.
PORK processors continue to seek assurance access to Victoria’s Diamond Valley processing plant will remain if a proposed JBS Australia acquisition goes ahead.
But JBS Australia management has assured producers service kills will continue.
JBS announced in June plans to acquire 100 per cent of Rivalea Holdings Pty Ltd, along with 100 per cent of Oxdale Dairy Enterprise Pty Ltd.
The purchase, which is subject to approval from the Australian Competition and Consumer Commission, would increase JBS Australia’s market share of the pork industry.
NSW pork processor BE Campbell made an unsuccessful bid on Rivalea Holdings.
BE Campbell managing director Ted Campbell said his disappointment was now “outweighed by concern for the industry”.
“It’s important to say my concerns aren’t around Rivalea being in foreign hands,” Mr Campbell said.
He said more than 75 per cent of export pig abattoirs in Victoria, NSW, and South Australia would be in the hands of JBS. “I know assurances have been made. We think there’s a risk competition thins out … and farmers are left with fewer selling options.”
Mr Campbell said as the biggest meat packing company in the world, JBS had the “strength and drive” to dominate the market.
“The concern lots of people have is they’ll make assurances at the moment … it could be for three or four years, but it’s not couched in commercial terms,” Mr Campbell said.
“Prices could go up, availability could go down … it’s too late then. The horse has bolted.”
JBS head of corporate affairs John Berry said commentary surrounding the proposed acquisition was “misinformed, inaccurate and negative”.
“We have been actively engaging with producers, customers, local politicians and industry bodies to answer questions and provide the facts around the Rivalea purchase,” Mr Berry said. “We are pleased with the level of engagement and positive support for purchase.”
JBS Australia chief executive Brent Eastwood said the importance of Diamond Valley service kills was understood, and JBS would continue to provide service kills “under commercial arrangements”. “In addition, we will look to attract additional service kill customers.”
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