Pakistan’s Poultry Industry Faces Scrutiny Over Price Fixing Allegations

Islamabad, The Competition Commission of Pakistan (CCP) recently held a hearing on alleged collusive practices within the poultry sector, specifically targeting the Pakistan Poultry Association (PPA) and several major hatcheries for purported price fixing of day-old broiler chicks.

According to Competition Commission of Pakistan, the CCP initiated an investigation following a sharp rise in prices and numerous complaints from broiler farmers via the Pakistan Citizens Portal, which pointed to potential cartelization activities. The investigation unearthed evidence suggesting that an official from one of the member firms was central to coordinating set prices across various hatcheries. These prices were regularly communicated through SMS and WhatsApp, implicating the PPA in these communications.

The implicated entities include well-known industry players such as Hitech Group, Islamabad Group of Companies, Olympia Group, Jadeed Group, Supreme Farms (Season’s Foods), Big Bird Group, and Sabirs’ Group, all suspected of engaging in price manipulation from 2019 to mid-2021. These companies are also vertically integrated, participating in all segments of the poultry supply chain from breeding to retail. The CCP has scheduled another hearing for May 21, 2024, to allow the remaining accused companies to present their defenses.