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Pakistan poultry feed millers involved in cartel scam

The Competition Commission of Pakistan (CCP) has notified 18 poultry feed mills for engaging in cartel and collusive price fixing practices.

The poultry feed mills have been asked to submit their written arguments within fifteen days, and to appear before the Commission on 23 and 24 November 2010. All these mills are members of Pakistan Poultry Association (PPA).

These notifications come in the aftermath of the recent PKR 50 million fine (€421,300) imposed by CCP on the PPA for cartel infringements in the poultry industry.
 
Earlier the CCP undertook investigation of the Pakistan's poultry industry based on news reports pertaining to high prices of day-old chicks and exorbitant increase in the prices of poultry feed.
 
PPA considered nerve centre
Upon preliminary investigation, the CCP observed that Pakistan Poultry Association served as the nerve-centre that connected the different sectors of the poultry industry, including feed manufacturers, breeders, hatcheries and broiler and layer farms.
 
The CCP Enquiry Committee discovered that information relating to rates of various poultry products, such as chicken meat, eggs, feed etc, was being displayed on the official website of PPA and that these rates were being updated on the website on regular basis.
 
Inspection of PPA's offices in Islamabad, Lahore and Karachi in May 2010 revealed documents that indicated that PPA, its committees, and their members regularly engaged in discussions and deliberations regarding production and pricing of poultry products and took decision on those matters.
 
CCP has stated that based on its initial findings, the poultry feed mills appears to have entered into an agreement amongst themselves and with other PPA members with regards to pricing, production and sale of poultry feed, which violates anti-cartel legislation.
 
The feed mills, which have been notified include: Kausar Feeds, Big Feed, Punjab Feeds, Lahore Feed, Pak Feed Industries, Islamabad Feeds, Supreme Feeds, Hi-Tech Feed, Shahzor Feeds, Asia Poultry Feeds, Sharif Feeds, Chakwal Feeds, Punjnad Feeds, National Feeds, Crescent Feeds, S.B Feeds, Kashmir Feeds, and Premium Feeds.

 

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2 comments

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    Mir Jamal Ahmed

    The action is based on total misinformation, lack of knowledge of the industry. The cartalisation is suppose to lead to higher profits for the organisations involved. however, in the last decade or so the margins have fallen dramatically. Though the prices have increased by more than 100%, thats only because of a huge increase in grain prices (highlighted in almost every news publishing website catering the industry), fall in rupee value in comparison to dollar and back breaking increase in energy cost and availibility.
    Mir Jamal Ahmed
    Manager supply chain and logistics Premium feed

  • Ali

    what misinformation and lack of knowledge?
    you are saying this because you are working for a feed mill.
    PPA and these feed mills owners are destroying small farmers in Pakistan.
    go and see and since two months meat rate,farmers are facing a very big loss,but feed price is increasing day by day.
    PPA is for welfare of farmers,but they are taking care of welfare of feed mills owner etc because PPA is made of them...
    regards

    Comment changed by a moderator

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