The ACCC will not oppose the acquisition of animal feed supplement supplier,
Animal feed supplements are important to farmers in helping them feed their cattle, particularly during periods when pasture supply and quality is low, and animals require additional nutrients. Molasses is a valuable source of energy and can be a useful input for animal feed supplements.
The ACCC's review focused on the closeness of competition between
Another focus of the review was whether the acquisition would provide
"After carefully examining the molasses supply arrangements between
The ACCC consulted with a wide range of market participants, including feedlot owners and graziers, competitors as well as third party distributors of molasses and sugar mills.
"We have listened to the concerns expressed by some businesses about shortages of molasses supplies from to time to time, particularly during times of severe drought. We have been very careful in examining this proposed acquisition to ensure that it does not exacerbate these existing challenges in a way that breaches our merger laws,"
The ACCC concluded that
The ACCC also considered that the proposed acquisition would not create the ability, or incentive, for the combined entity to reduce molasses supplies to downstream players.
"We concluded that competing animal feed supplement suppliers will still be able to obtain molasses supply directly from sugar mills, distributors and other resellers,"
More information can be found on the ACCC's website at
Background
Through its GrainCorp Feeds Australia (GFA) division,
XF Australia is an animal feed supplement and nutritional consulting business. XF Australia supplies liquid and loose lick animal feed supplement products specifically for beef and dairy cattle and sheep through its subsidiary Performance Feeds to customers in
Performance Feeds supplies animal feed supplement products out of three facilities in
Animal feed supplements are products designed to provide additional nutrients to the diet of animals. The goals of supplement can differ depending on the type of farming and pasture quality. In drought conditions where pasture quality is low, animal feed supplements can be important as animals are able to obtain less nutrients from their pasture.
https://www.accc.gov.au
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