Acquirer: Sunny Queen Ltd; Target: Farm Pride Foods Pty Ltd


  • Sunny Queen Ltd


  • Farm Pride Foods Pty Ltd


Farm Pride Foods (FPF) is a Victorian-based, publicly listed producer and supplier of shell eggs and egg products. It is vertically integrated in that it is a producer, wholesaler, processor, marketer and distributor of shell eggs, and a processor and marketer of egg product in Australia.
Sunny Queen (SQ) is a Queensland based private company that produces and supplies fresh shell eggs. It is vertically integrated in that it produces, grades, distributes and markets shell eggs. SQ does not presently produce egg product but will soon complete a plant enabling it to do so.
SQ proposes to acquire the egg business of FPF.

Market definition

For the purpose of competition analysis the following markets were considered:
1. the market for eggs sold in shell form ('shell eggs') in Eastern Australia which includes two functional markets:

" the supermarket market;
" the box market;

2. the market for processed egg products ('egg products') in Eastern Australia with two sub-markets:

" the dried egg products market;
" the liquid egg products market.

Competition analysis

The Commission noted that although the proposed acquisition crosses the Commission's concentration thresholds in the eastern Australian shell eggs market and the egg product market, Sunny Queen will continue to be constrained by strong, large competitors and small independents.

The Commission also noted the countervailing and bargaining power of customers and the views of market participants that the proposed acquisition is likely to intensify competition.

The Commission therefore found that the proposed acquisition is unlikely to result in a substantial lessening of competition in any market. The Commission does not intend to intervene in the proposed transaction.

Merger type


Guidelines thresholds


Imports above 10%