Foreign investors prompt consolidation of meat processors

Shareholders in Farm Food, Miestar, and Jaroslaw, meat manufacturers, voted in support of a merger with Sokolow last Tuesday, while Indykpol and Lubdrob decided on a separate merger on Friday. The first merger will see Sokolow with six meat plants and 20% market share, become the biggest Polish meat company with other competitors Animex and Morliny holding 12% and 6% respectively. Sokolow will increase its revenues threefold to zl. 1 billion this year whereas the merger of Indykpol and Lubdrob, poultry manufacturers, would give the new company a strong foothold on the market with profits rising to zl. 350 million and 15% market share. Both mergers were allegedly driven by foreign strategic investors in both companies. Sokolow, Farm Food, Miestar and Jaroslaw are controlled by Swedish Farmers Federation (LFR), Indykpol and Lubdrob by American company Jerome Foods. It is estimated half of the Polish meat processing sector is currently controlled by foreign capital. (Gazeta Wyborcza, page 34) P.S.