The president of the entity, Patricio Cortabarría, was concerned about a possible “dominant position” of the Brazilian company.
Minerva could reach a percentage greater than 60% of the meat exported from the country, warned the president of the Rural Association of Uruguay (ARU), Patricio Cortabarría, in moments where Commission for the Promotion and Defense of Competition You have to decide whether to purchase the three refrigerators Marfrig on the part of the company whether or not they represent market concentration.
Barrier cutter pointed out in dialogue with Channel 4 that the Brazilian company reached 47% of the task after purchasing the refrigerator Breeders & Packers Uruguay (BPU) and, if this operation is ratified, “the slaughter potential is greater and could reach more than 60% of the meat exported,” he expressed, whitewashing the sector’s concern.
By delving into that position, the head of the ARU argued: “When you let someone become so big, ultimately what you are doing is leaving the dominant position to a group or a person with respect, not only to the producers, who are the sellers of those farms, but also to the rest of the people.” the industry, which is going to have a hard time competing with a giant within its own market.”
Competition Defense must define the legality of the operation
In the coming days, Defense of Competition, a commission that depends on the Ministry of Economy and Finance (MEF)you will have to define the legality of the purchase of the plants Inaler, Cologne and The Caballada.
Hector Ferreira, study member Hughes & Hughes and specialist in commercial law, told Radio Carve that in the first instance “the relevant market” should be analyzed, which includes the task and buying and selling livestock.
Then, technicians must “review whether this concentration has the potential to obstruct, limit or restrict competition” and then analyze other elements such as “efficiency gains and what is always the final objective, which is the consumer.” In addition to total approval or rejection, the agency can enable the sale of one or two of the plants, as well as “condition” it.
Meat exports to China grew
In this context, the exports of meat fresh boneless and boneless beef heading to China They revalued by 4.3% between September and August, with an average monthly value of 4,440 dollars per ton.
Uruguay exported to the Asian giant some 11,507 tons of boneless frozen meat and 5,610 tons of bone-in frozen meat, which represents a level similar to that of August, according to data from the National Customs Directorate.
At the same time, USA ranked second among the main destinations for frozen meat with 4,324 tons of deboned product, while Canada took the podium with 1,020 tons and Israel It was fourth, with an import of 841 tons of Uruguayan boneless frozen meat.
Source: Ambito
