FOUR processors dominate 49 per cent of Australia's meat processing sector.
And only one of the companies is Australian owned, according to a new report, Meat Processing in Australia, released by industry research firm IBISWorld.
The balance is made up of 765 processing operations, which hold 51 per cent of market share, according to the report.
Swift Australia, whose parent company is South America's JBS Swift, accounts for 22 per cent of the market, while the US-owned Cargill Australia has a 12 per cent market share.
Next in line is Consolidated Press Holdings, which merged with Teys Brothers in 2002, with a 9 per cent share and the Japanese-owned Nippon Meats (6 per cent).
According to the report, the "top 25 processors accounted for 79 per cent of total red meat production" in 2007.
According to the report's author, Suzanne Walker, further rationalisation of the sector is expected over the next five years.
"Growth in the meat-processing industry over the next five years is likely to be constrained by increased competition in beef export markets, falls in prices from production growth, and slow growth in consumption of red meat," Ms Walker said.
Cattle Council of Australia president Greg Brown said consolidation of the market was "very worrying" from a producer's point of view.
"As producers we are very pleased to have (Swift Australia) here, and value their competition in the market place, but we are concerned about market domination of one company like them," Mr Brown said.
"If the proposed acquisition of Rockdale Beef goes ahead it takes an additional player out of the market.
"I was surprised at the market share that Swift have in the eastern states."
CCA has made a submission to the Australian Competition and Consumer Commission in regard to Swift Australia's acquisition of the Japanese-owned processing facility and feedlot Rockdale Beef at Yanco in NSW.
The ACCC is conducting an informal review of the proposed acquisition to ensure the purchase is not anti-competitive.
Swift Australia's turnover in 2008-09 was $2.45 billion, an increase of 4.5 per cent on the previous year, while its profits grew more than 200 per cent to $55.3 million.
Fletcher International Exports, in Dubbo NSW - which mostly processes lambs for the export market - accounts for 3 per cent of the market, more than Midfield Meats at Warrnambool (2 per cent) and Southern Meats at Goulburn in NSW (1 per cent).
