July 12, 2023

New Zealand Commerce Commission approves Inghams Enterprises' acquisition of Bromley Park Hatcheries operations

The New Zealand Commerce Commission has granted clearance for Inghams Enterprises, an Australian-owned poultry business, to acquire certain operations of local poultry business Bromley Park Hatcheries, Stuff reported.

In a notice seeking clearance for the deal, Inghams estimated the sale to be valued at NZD 8.6 million (~US$5.3 million; NZD 1 = US$0.62)

Inghams Enterprises, a part of the Inghams Group, is an Australian-based poultry company involved in breeding operations, hatcheries, contract growing, and processing. New Zealand-based Bromley Park Hatcheries is a producer of day-old chicks and operates breeder farms and a hatchery.

Out of Bromley Park Hatcheries' three business units, only two were included in the sale. The Riverland business, which sells stock to the Pacific Islands for meat production, and the Shaver/SXB business, which produces day-old chicks for egg-laying hens, were the units being sold.

Inghams stated that it has been purchasing day-old chicks from Bromley Park Hatcheries for several years, and this acquisition will help secure its supply chain and meet future demand.

According to Commission chair John Small, the commission's assessment of the proposed acquisition focused on the supply of day-old chicks to poultry growers and processors. After careful consideration, the commission concluded that the acquisition is unlikely to substantially lessen competition in the New Zealand market.

In New Zealand, breeders import "grandparent" eggs, which are hatched to become parent breeder stock. These parent breeders then lay eggs for broiler (meat) chicken production or egg production. The eggs from parent breeders are kept in hatcheries until they hatch. Once hatched, day-old chicks for broiler chickens are sent to growing farms, where they are raised until they are ready for processing by broiler chicken processors like Inghams. The processed chickens are then transformed into various products sold to supermarkets, food service providers, or quick-service restaurants.

-      Stuff