By Staff Reporter
ISLAMABAD: An antitrust regulator fined eight poultry hatcheries a combined Rs155 million for illegally colluding to fix prices of day-old chicks, a scheme it said worsened food inflation and exploited consumers amid economic strain.
The Competition Commission of Pakistan (CCP), acting on its own investigation, found that the companies coordinated prices through a WhatsApp group named “Chick Rate Announcement,” illegally inflating chick rates by over 340 percent between March 2020 and April 2021.
“The inquiry found that major hatcheries — including Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group — engaged in coordinated price-fixing, in violation of Section 4 of the Competition Act, 2010,” the requlator said in a statement on Wednesday.
The CCP’s probe revealed that senior officials from the eight firms, including Dr. Shahid, marketing manager at Big Bird Group — who administered the WhatsApp group — exchanged price-sensitive information 198 times between 2019 and 2021.
Daily rates were set via text or WhatsApp messages, with uniform prices enforced across Punjab and adjusted for cities like Karachi and Multan using freight costs as cover.
Senior Pakistan Poultry Association (PPA) officials, including Hatchery Affairs Committee Chairman Dr. Abdul Karim and Secretary General Major (R) Syed Javaid Hussain Bukhari, were members of the cartel but failed to intervene. “Senior officials of the Poultry Association present in the group never stop the sharing of price information, thereby facilitating the collusion,” the CCP said.
Day-old chick prices surged from Rs17.92 to Rs79.92 each between March 2020 and April 2021 — a 346 percent jump — which the CCP linked to soaring broiler meat costs. Section 4 of Pakistan’s Competition Act prohibits anticompetitive agreements, including price-fixing.
“Trade associations are meant to help develop their sectors, not to share price-sensitive information or facilitate cartelization,” the CCP said, adding that prices must reflect supply and demand, not backroom deals.
“Price-fixing through associations is a serious market distortion and an exploitation of consumers.”
The regulator warned it is probing new complaints of renewed collusion, with chick prices recently hitting Rs230 — nearly triple the “fair rate” of 78 rupees. “The Commission warned that cartelization harms competition, drives up food prices, and is a shameful exploitation of society.”
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