A Phase 1 investigation by the Competition and Markets Authority (CMA) has found that Boparan’s proposed purchase of ForFarmers’ Burston feed mill site could lead to a substantial lessening of competition (SLC) in the supply of poultry feed to independent customers (such as farmers) in East Anglia.  



The CMA has also found that as a result of the transaction, Boparan would have the ability and incentive to harm rival poultry meat producers, leading to higher poultry feed costs for chicken farmers and processors which could be ultimately passed to retailers and consumers.  



ForFarmers and Boparan (through 2Agriculture) both manufacture and supply chicken and other types of poultry feed in the UK.  



The CMA’s investigation found that the deal could lead to reduced competition in the local area around Burston – 1 of the 2 feed mill sites Boparan is seeking to purchase from ForFarmers. The CMA is concerned that the deal could lead to less capacity for feed being supplied to independent farmers and processors resulting in higher costs and a reduction in quality of services.  



The CMA did not find competition concerns in relation to the second feed mill site Boparan is planning to acquire in Radstock.  



ForFarmers and Boparan have 5 working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the CMA will progress to an in-depth Phase 2 investigation.



Joel Bamford, Executive Director of Mergers at the CMA, said:  


  

We’re concerned that this deal could worsen competition between poultry feed suppliers in East Anglia – leading to higher costs for farmers which could then be passed down to shoppers.  

  

It’s now up to the companies to offer solutions to address our concerns and avoid the deal moving to a full Phase 2 investigation.




For more information, visit the Boparan / ForFarmers (Burston and Radstock mills) case page.

Notes to Editors:  


  ForFarmers is a European manufacturer and supplier of animal feed, based in the Netherlands. 2Agriculture, a subsidiary of Boparan, is one of the UK’s largest suppliers of poultry feed by volume produced and uses its production to supply Hook 2 Sisters, a company affiliated with Boparan, as well as farmers on the open market. 
  In 2022, the CMA investigated a joint venture by ForFarmers and Boparan. Following a Phase 1 investigation, the CMA found that the merger gave rise to competition concerns in the local areas around four of the feed mills operated by the combined businesses, namely in Burston, Bury, Llay and Preston. The combined businesses would have accounted for 50 to 60% of the supply of meat poultry feed to third parties in three of these local areas (Burston, Bury and Llay) and 40 to 50% in the fourth local area (Preston). The companies offered proposals to address the CMA’s concerns at the time, but the CMA considered that these were unlikely to be sufficient in addressing its competition concerns and, as a result, the deal was referred for an in-depth Phase 2 investigation. Ultimately, the deal was abandoned by the Parties on 8 February 2023 during the CMA’s Phase 2 investigation. More information on the CMA’s previous investigation is available on the ForFarmers / Boparan JV case page. 
  The CMA has a statutory duty to promote competition for the benefit of consumers and assesses each case on its individual merits. This includes a duty to investigate mergers that could raise competition concerns in the UK where it has jurisdiction to do so. In this case, the CMA has concluded that the CMA has jurisdiction to review this merger because a relevant merger situation has been created: each of Boparan and ForFarmers’ Burston and Radstock feed mills is an enterprise that will cease to be distinct as a result of the merger and the turnover test is met.  More information on the CMA’s mergers jurisdiction and procedure can be read on its guidance page. 
  All media enquiries should be directed to the CMA press office by email on press@cma.gov.uk, or by phone on 020 3738 6460. 
  All enquiries from the general public should be directed to the CMA’s General Enquiries team on general.enquiries@cma.gov.uk or 020 3738 6000.

CMA Investigates Boparan's Acquisition of ForFarmers' Feed Mill Site

A Phase 1 investigation by the CMA revealed that Boparan's acquisition of ForFarmers' Burston feed mill site may result in a substantial lessening of competition in the supply of poultry feed to independent customers in East Anglia.

 The deal could give Boparan the ability and incentive to harm rival poultry meat producers, leading to increased poultry feed costs for farmers and processors, which may be passed on to retailers and consumers.

 Both ForFarmers and Boparan are involved in manufacturing and supplying chicken and other types of poultry feed in the UK.

 The CMA is concerned that the transaction could lead to reduced competition, higher costs, and a potential decline in the quality of services in the local area around the Burston feed mill site.

 ForFarmers and Boparan have a limited time to propose solutions to address the CMA's concerns before a Phase 2 investigation is initiated.



CMA Investigates Boparan's Acquisition of ForFarmers' Feed Mill Site

The Competition and Markets Authority (CMA) is concerned that Boparan's proposed purchase of ForFarmers' Burston feed mill site could reduce competition in the supply of poultry feed to independent customers in East Anglia, potentially leading to higher costs for farmers and consumers.