Lack of data is problematic for meat sector

A battle for control of a key meat processor is unfolding in the US and it has features that should be analysed by those engaged in meat production closer to home.

The takeover war is for a company named Hillshire Brands, which produces branded meat products and has a turnover of $4bn (€2.9bn). It has leading market shares in sausages, lunchmeat, and hotdogs. Almost 90% of its output is branded and 75% of production is sold through retail outlets, with the remainder distributed via food service channels.

Hillshire was about to acquire another US food company — Pinnacle Foods — for $6.6bn but has now become the subject of two bids from Pilgrims Pride and Tyson Foods. Pilgrim bid $6.4bn and Tyson has offered $6.8bn for Hillshire, with speculation growing that further bids could arise. The bids are a 35%-plus premium to the share price of Hillshire just one month ago.