UK competition watchdog said on Wednesday the potential joint venture between Dutch animal feed maker ForFarmers and British firm Boparan could lead to farmers paying higher prices to feed poultry, reported Reuters.

"With food prices already increasing and the wider cost of living crisis, it is vital that we don't allow a reduction in competition between poultry feed suppliers, which could make this situation worse - both for farmers and shoppers at the check-out," Sorcha O'Carroll, senior director of mergers at the Competition and Markets Authority (CMA) said in a statement.

ForFarmers UK, a unit of Amsterdam-listed ForFarmers NV, and 2Agriculture, a British firm owned by holding company Boparan Private Office, in July agreed to merge their businesses in the UK into a joint venture.

The deal raised competition concerns in four local areas across East Anglia, north-western England and North Wales, the CMA said after Phase 1 probe, and warned these areas could see higher prices forpoultry feed, lower quality feed or worse quality of service.

The CMA said it was also concerned that the JV could unfairly favour Boparan's chicken farming and processing businesses.