Fane Valley Group, one of Northern Ireland’s biggest farmer-owned cooperatives, has sold its 50% share in three red meat processing plants, including Linden Foods.
Buyer ABP Meats has now taken control of the Dungannon business as well as Irish Country Meats, which has plants in Wexford, Meath and Belgium, and Slaney Foods, also based in Wexford.
The move brings to an end a five-year joint venture between the two companies and makes ABP, which is owned by Larry Goodman, one of the biggest red meat processors in Northern Ireland alongside its plants in Dungannon, Lurgan and Newry.
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The three businesses will continue to operate as normal under their trading names, ABP said.
Trevor Lockhart, Chief Executive of Fane Valley, said the decision to sell the stake made strategic sense.
“The trading environment however does not stand still, and all businesses need to continue to evolve and develop to maintain their competitive position in the market, he said in a statement. “Having reviewed the way forward with our joint venture partner and taking account of anticipated market developments, we have jointly concluded that the future objectives for Linden, Slaney and ICM can be best achieved under a new business structure, hence the aforementioned announcement.
He added that the deal is pending regulatory approval.
Alongside its animal feed production facilities, agricultural supply stores and agronomy and forage services, Fane Valley also owns Whites Oats and bought Silver Hill Ducks, the Monaghan business which produces and supplies 98% of the European market for so-called “head-on” ducks.
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Frank Stephenson, Chief Executive of ABP, said the purchase of its remaining share of the red meat joint venture was a result of its successful experience with Fane Valley.
“This development is the direct result of our successful joint venture arrangement, which has enabled all parties to improve their offerings to customers and to compete more effectively nationally and internationally,” he said. “The time is now right to build on this success ensuring that we continue to be a dynamic and innovative organisation as we face into the challenges of operating in a very competitive global marketplace; whilst also addressing the ongoing challenges of changing agricultural policies, Brexit and Covid-19.”