Australian poultry giant Inghams is seeking Commerce Commission clearance to buy parts of Bromley Park Hatcheries, the Batkin family-owned producer of day-old chicks at Tuakau, South Auckland and near Christchurch.
Bromley Park brings into New Zealand the Cobb and Shaver genetics that underpin the country’s meat chicken and egg-laying industries.
Inghams seeks clearance to buy the Cobb Commercial and Riverlands businesses, which sells Cobb parent stock to the Pacific Islands.
The purchase price is $8.6 million and the Shaver part of Bromley’s businesses, mostly located in Canterbury, is not included.
In its clearance application, Inghams said it wants to safeguard its supply of day-old chicks for the broiler farms it owns and operates in New Zealand and that it will continue to supply chicks for other poultry companies.
Because Bromley has exclusive rights to the distribution of the Cobb breed in NZ, the proposed Ingham purchase has vertical integration implications for the whole industry.
Inghams faces strong competition from Tegel, which also sells day-old chicks, and it claims the Bromley purchase would not harm other poultry companies like Brinks and Turks.
The Commerce Commission is inviting submissions by June 9 and it expects to make its clearance decision by July 7.
Bromley Park Hatcheries was founded by the Batkin family in 1920 and started importing Shaver genetics in 1972 and Cobb genetics in 1990.
New Zealand’s largest egg producer, Mainland Poultry, also known as Zeagold Nutrition, is a 24% partner in Bromley.