Agri-group suggestion causes stir

ABN-Amro analyst Joe Gills' paper at last week's UCC Food Forum caused a little bit of a stir, particularly the suggestion that IAWS and Greencore should merge to create a large Irish agri-group that would be able to compete with Europe's biggest and best.

But another suggestion which didn't get nearly the same amount of coverage was the one calling for a "big bang" in the meat industry, with the hugely-secretive meat companies opening up their books in return for an investment package from both State and farmers which would refinance the sector, invest properly in its asset base and provide a formidable processing arm for what is agriculture's second largest activity.

Hmm! The meat companies, and particularly the big three which would probably survive any big bang - Larry Goodman's Irish Food Processors, Kepak and Dawn Meats - have eagerly gobbled up EU and FEOGA money in the past without having to bother with the tiresome chore of opening up the books. The concept of opening their books for industry analysts - not to mention the beef farmers who supply their plants - would be something of a culture shock.

Still, judging from Avonmore Waterford's atrocious figures from its meat division a few weeks ago, all the processors must be hurting and even the most myopic meat executive must recognise that the industry is too fragmented, too involved in primary processing and under-invested.