ONE of Europe's leading meat processors is set to take a 50 per cent stake in Dungannon-based meat processor Linden Foods alongside current owner Fane Valley.
ABP Food Group is extending its joint venture relationship with Fane Valley to include the firm's UK meat processing business and follows last year’s Slaney Foods and Irish Country Meats collaboration between both parties.
Linden Foods is an award-winning meat processor with facilities in Dungannon, Fermanagh (Kettyle Irish Foods) and Burradon, England. The new joint ownership will see the company continue to operate under its current trading name and management team.
Fane Valley Co-operative chief executive Trevor Lockhart said the new venture would ensure Linden can capitalise on new commercial growth opportunities within both the domestic and international market place.
"The involvement of ABP will strengthen our global sales network and assist in ensuring Linden maximises the returns from all parts of the animal, including the fifth quarter. This will be a pre-requisite to delivering sustainable returns to primary producers in a post-Brexit era.”
Frank Stephenson, chief executive of ABP, who operate across the UK, Ireland and Poland, added his delight at the deal. "We are very pleased to have reached an agreement in principle with Fane Valley Co-Op and look forward to building on our successful partnership with Slaney Foods and Irish Country Meats," he said.
The joint venture, subject to approval by the relevant regulatory and competition authorities, has been met with a note of caution from the UFU, who warned that both companies must ensure that competition is not hindered
“ABP taking a 50 per cent stake in Linden Foods will cause some farmers alarm and raise questions about competition," deputy president Victor Chestnutt said.
“It is early days but ultimately we will judge the success of this new venture on the future producer returns for cattle and sheep. Despite the buoyant prices at the minute, profitability on beef and sheep farms remains low."
