NMa: Agreement on Integral Production Chain Management Schemes for Veal and Beef

The Netherlands Competition Authority (NMa) has granted an exemption from the prohibition on cartels for three quality management systems of the Marketing Board for Poultry and Meat [Productschap voor Vee en Vlees]. This relates to the Integral Production Chain Management [Integrale Keten Beheersings (IKB)] systems for grain-fed and milk-fed veal and beef.

NMa has permitted the Integral Production Chain Management schemes because the Marketing Board for Poultry and Meat initially showed that the advantages associated with the schemes outweighed the disadvantages of restraints on competition. The Integral Production Chain Management schemes contribute to the improvement of production and distribution of grain-fed and milk-fed veal and beef. In addition, the diversity of grain-fed and milk-fed veal and beef on offer will increase, as a result of which customers will have greater freedom of choice. In addition, the Marketing Board for Poultry and Meat showed that the schemes did not place unnecessary restraints on competition. For instance, the participants in the scheme are free to determine their own prices and to determine the quantities they wish to produce. As a result, the market will be sufficiently competitive.

The exemptions are in line with an earlier decision on the Integral Chain Management scheme for pork. As in the case of the Integral Chain Management scheme for pork, the exemptions for the Integral Chain Management schemes for grain-fed and milk-fed veal and beef have been granted for a period of five years.

Grain-fed veal comes from veal calves that have been fed more unprocessed feed. As a consequence, the colour of the meat is slightly darker than that of traditional (milk-fed) veal.