A MERGER between Jersey’s two largest potato exporters is subject to conditions designed to protect independent growers, the Island’s competition watchdog has said.
Albert Bartlett recently announced it had formally acquired the Jersey Royal Company from Produce Investments, following approval from the Jersey Competition Regulatory Authority.
The JCRA has since issued a statement explaining that it had approved the merger with two conditions attached – both of which are legally binding for Albert Bartlett.
The first states that the company must commit, in writing, to provide independent growers who agree to supply it with potatoes “a fair, reasonable and nondiscriminatory market price” for their stock.
The second ensures that any independent grower who believes that Albert Bartlett has not honoured the first condition can raise concerns with the Jersey Farmers Union – or directly with the Environment Minister or Economic Development Minister.
It also states that Albert Bartlett must engage in any consequential discussions “transparently, constructively and in good faith”.
Outlining the reasons for its decision, the JCRA noted that the deal would ultimately create a business that exports “the vast majority” of all Jersey Royals grown in Jersey each year, to the UK.
This meant there was a risk that, if growers were not happy with the price offered for their potatoes, “they would have no alternate route to market in the UK on the scale of the merged entity”.
The watchdog explained that it was able to attach conditions to the merger in order to “safeguard the interests of consumers, businesses, and the market”.
It also concluded that the deal would be likely to “create efficiencies” and enable the business to “better compete in the UK tendering process”, as well as “support the status and longevity of the Jersey Royal brand” and “protect the Island’s agricultural industry”.
JCRA chief executive Tim Ringsdore said: “In coming to this decision, the authority has worked closely with stakeholders, especially government, who maintain close oversight and control of the Jersey Royal sector, the independent growers, and, of course, the parties to the transaction, to arrive at an outcome that benefits consumers, the independent growers, the local economy and Jersey’s position in this market.”
