UFU comment on Sainsbury’s and Asda merger

Thursday, 25 April, 2019

If commenting on the announcement that the proposed merger between retailers Sainsbury’s and Asda has been blocked by the Competition and Markets Authority (CMA), please consider the following comment from Ulster Farmers’ Union president, Ivor Ferguson.

“The announcement by the CMA to block the proposed merger of Sainsbury’s and Asda has not come as a surprise. Its findings highlight the impact that the proposed merger could have had on the entire food supply chain and for us the key concern has always been on the potential impact it could have on our members.”

CMA have reported that this deal would lead to increased prices, reduced quality and choice of products.  Mr Ferguson added, “It has always been our view that we, the primary producer would most likely have been hit with pressure on prices being paid for our high-quality products, due to the increased pricing power of this merger. This would have been completely unacceptable, given that margins are already tight on many farm businesses.”

The UFU will continue to monitor the decisions, which both of these major retailers will be taking going forward as a result of this announcement.