UK’s market watchdog clears Boparan’s acquisition of ForFarmers

UK – The UK’s Competition and Markets Authority (CMA) has granted final approval for Boparan’s acquisition of ForFarmers’ feed mill sites in Burston and Radstock, concluding an in-depth Phase 2 investigation. ​

ForFarmers, headquartered in the Netherlands, is a prominent European manufacturer and supplier of animal feed. Boparan, through its subsidiary 2Agriculture, stands among the UK’s largest poultry feed suppliers, providing feed to Hook 2 Sisters, an affiliate of Boparan, as well as to independent farmers. ​

The CMA’s investigation assessed potential competition concerns, particularly regarding the Burston feed mill in East Anglia. The inquiry considered whether the acquisition might reduce manufacturing capacity for chicken feed in the region, potentially impacting local suppliers.

According to a Phase 1 investigation by the CMA, the deal could reduce competition, potentially leading to higher feed costs for local poultry producers, which may ultimately raise prices for consumers.

The CMA’s concerns were primarily tied to Boparan’s significant presence in the region, where 2Agriculture, its feed supply subsidiary, already serves a broad network across Scotland, East Anglia, and North Wales. 

According to CMA, the acquisition of ForFarmers’ Burston feed mill could provide Boparan with enhanced market control, giving it the power to disadvantage rival poultry producers by increasing costs or reducing service quality for independent farmers in the area. 

“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,” remarked Joel Bamford, the CMA’s executive director of mergers.

However, the CMA concluded that sufficient alternative providers exist, ensuring that farmers and chicken suppliers retain options for sourcing feed.

Kirstin Baker, chair of the independent inquiry group, stated, “Having assessed the evidence and feedback to our interim report, which suggested that competition would not be harmed, we have given this acquisition clearance to proceed.” ​

The CMA’s clearance of Boparan’s acquisition reflects confidence that the transaction will not substantially lessen competition in the poultry feed sector. This decision is expected to maintain a competitive environment, benefiting farmers and suppliers by preserving choice and encouraging fair pricing

The approval comes at a time when the UK poultry feed market is projected to experience steady growth in the coming years.

According to industry reports, the market size is expected to reach approximately £5.43 billion in 2025, with a compound annual growth rate (CAGR) of 2.5% by 2030. This growth is driven by factors such as rising consumer demand for poultry products and advancements in feed formulations.

As a raft of measures to stabilize the feed and consumer market, the UK government is considering policy changes that could impact the industry.

For instance, ministers are contemplating lifting a ban established during the BSE crisis on using animal remains in chicken and pig feed. This move aims to support British farmers in competing against foreign products, although it has sparked debates over potential health risks and the introduction of pathogens.

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