ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a fine of Rs155 million on eight leading poultry hatcheries for engaging in cartelization and fixing the prices of day-old broiler chicks (DOCs), a practice that severely distorted market competition and contributed to rampant food inflation.
In a suo motu action, the CCP launched an inquiry into the DOC market and found that hatcheries including Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group were colluding to manipulate DOC prices in violation of Section 4 of the Competition Act, 2010.
The investigation revealed that these companies coordinated prices via a WhatsApp group titled “Chick Rate Announcement”, administered by Dr. Shahid, Marketing Manager of Big Bird Group. He routinely sent the next day’s prices through text or WhatsApp to group members, while officials of the Pakistan Poultry Association (PPA), including Dr. Abdul Karim (Chairman, Hatchery Affairs Committee) and Major (R) Syed Javaid Hussain Bukhari (Secretary General), were also part of the group.
Between 2019 and 2021, the cartel shared price-sensitive information approximately 198 times — 108 via text messages and 87 on WhatsApp — and regularly issued uniform DOC rates across Punjab, with downstream effects in Multan and Karachi. This coordination led to a 346% surge in DOC prices, from Rs17.92 in March 2020 to Rs79.92 in April 2021, fueling broiler meat inflation nationwide.
The Commission condemned the misuse of trade associations for facilitating collusion, emphasizing that “prices must be dictated by demand and supply, not backroom arrangements.” The CCP added that such cartelization harms not only consumers but also fair players in the poultry value chain.
The ruling also highlighted fresh complaints suggesting renewed collusion, with DOC prices reportedly spiking to Rs230 per chick, far above the fair market rate of Rs78.
The CCP urged stakeholders and whistleblowers to report anti-competitive practices via its official complaint portal, reiterating that it would not tolerate manipulation that burdens the public and undermines market integrity.
