NMa: Dumeco Must Amend Its Restructuring Agreements

Following information received from the sector, the Netherlands Competition Authority (NMa) has investigated whether the recent termination of the slaughtering activities of a number of smaller pig abattoirs contravenes the Competition Act. This relates to agreements which Dumeco has entered into with the pig abattoirs, Udema Vlees in Houlton, Houbensteyn Porkhof in Ysselsteyn (LB), Het Rotterdams Varkensslachthuis, Slachthuis Veenendaal, Slachthuis Roosendaal, Postma in Emmeloord and Benedik in Landgraaf.

On the basis of its investigation, NMa established that Dumeco B.V., the largest pig abattoir in the Netherlands, has entered into restructuring agreements with these abattoirs and that certain clauses within these agreements restrain competition. This relates primarily to the agreement that pig abattoirs, which are now being restructured, may no longer slaughter pigs at their locations. In addition, a non-competition clause has been included which stipulates that companies and their shareholders may no longer be active within the sector. Since both agreements are of unlimited duration, competition within the sector is seriously restrained in the (medium to) long term. NMa's investigation did not show that the restructuring agreements within the sector had been coordinated.

NMa has instructed Dumeco to amend the agreements so that they no longer contravene the Competition Act. Dumeco is currently in consultation with NMa in this regard.