ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a collective fine of Rs155 million on eight leading poultry hatcheries for engaging in cartelization and price-fixing of day-old broiler chicks (DOCs).
As per details the action follows a suo motu inquiry launched by the CCP, which found that the companies had violated Section 4 of the Competition Act, 2010 by coordinating prices and restricting competition in the DOC market.
The companies penalized include Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group.
According to the CCP’s inquiry, the hatcheries coordinated prices through a WhatsApp group titled “Chick Rate Announcement,” managed by a senior official from Big Bird Group.
Dr. Shahid, Marketing Manager at Big Bird Group, regularly circulated next-day prices via phone texts and WhatsApp messages to the group. Among the recipients were Dr. Abdul Karim, Chairman of the Hatchery Affairs Committee of the Pakistan Poultry Association (PPA), and Major (R) Syed Javaid Hussain Bukhari, Secretary General of the PPA.
From 2019 to 2021, group members shared price-sensitive information on at least 198 occasions 108 times via text and 87 times through WhatsApp. The messages often resulted in uniform price announcements across Punjab and had ripple effects in Multan and Karachi after minor freight adjustments.
Despite being privy to these communications, PPA officials took no steps to prevent the price coordination. Between March 2020 and April 2021, the price of DOCs skyrocketed by 346%, rising from Rs17.92 to Rs79.92 per chick a surge that significantly contributed to broiler meat price inflation.
The CCP emphasized that Section 4 of the Competition Act prohibits collusive agreements that fix prices, limit supply, or manipulate production. The Commission stated that trade associations must support sector development, not facilitate price-fixing.
“Price-fixing through associations distorts the market and exploits consumers. Prices should reflect free-market dynamics not be dictated by secret agreements,” the CCP stated.
The Commission also noted fresh complaints suggesting that similar collusive behavior may be recurring, with DOC prices recently spiking to as high as Rs230 per chick, while the fair market rate is estimated at Rs78.
The CCP has urged stakeholders and the public to report anti-competitive practices via its complaint portal, warning that such cartelization not only hurts competition but also exacerbates food inflation placing an unjust burden on the public.
