Northern Irish meat processor Dunbia and Irish-based processor Dawn Meats have entered into a new joint venture.
The move will establish a majority owned joint venture in the United Kingdom comprising the UK operations of both organisations.
The combined UK businesses will trade as Dunbia.
A Dunbia statement said: “We will deliver enhanced scale and market presence to better serve existing farmer suppliers and customers of both organisations across the retail, manufacturing, wholesale and food service sectors.”
The Ulster Farmers’ Union deputy president Victor Chestnett said that the new strategic partnership between Dunbia and Dawn Meats will not come as surprise to most farmers as rumours have been circulating for some time now.
“It is early days for the venture but ultimately the news will be judged on the future returns Dunbia can generate for cattle and sheep. Despite the buoyant prices at the minute, profitability on beef and sheep farms remains low.”
'Better service for farmers'
Mr Chestnutt added that it will be important that the company delivers on its commitment to deliver a better service for their farmer suppliers.
“We believe this can be achieved through greater industry collaboration and striving towards adding more value to Northern Ireland beef and lamb.
“Dunbia has built a successful business in Northern Ireland over the years, one which farmers are very familiar with. It is positive they will remain headquartered in Dungannon.”
Across Dawn Meats and Dunbia, the businesses process approximately 900,000 cattle and 2.6 million sheep annually.
The deal is subject to approval by the relevant competition authorities.
