ISLAMABAD: The Competition Commission of Pakistan (CCP) fined eight major poultry hatcheries a total of Rs155 million for fixing prices of day-old broiler chicks (DOCs), according to a CCP press release.
As per the details, Last week the National Price Monitoring Committee raised concerns about increasing prices of perishable goods and asked the Ministry of Food Security to create a price control system for poultry.
The CCP started an investigation after noticing signs of price-fixing in the DOC market. It found that eight hatcheries—Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group—worked together to set prices.
The CCP explained that the hatcheries used a WhatsApp group called “Chick Rate Announcement” to discuss prices. A senior official from Big Bird Group managed the group, and their Marketing Manager, Dr. Shahid, shared daily price updates.
The cartel set uniform DOC prices for Punjab and slightly adjusted prices for Multan and Karachi, from 2019 to 2021, the group shared next-day prices about 198 times, with 108 text messages and 87 WhatsApp messages, the CCP noted.
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Between March 2020 and April 2021, DOC prices increased by 346 percent, from Rs17.92 to Rs79.92 per chick, which led to higher chicken prices.
The WhatsApp group also included Pakistan Poultry Association (PPA) officials, such as Hatchery Affairs Committee Chairman Abdul Karim and PPA Secretary, retired Major General Syed Javaid Hussain Bukhari.
The CCP stated that the eight hatcheries violated Section 4 of the Competition Act 2010, which bans agreements to fix prices, control supply, or limit production.
The CCP said such actions harm competition and raise food prices, affecting consumers. It noted that trade associations should support their industries, not help fix prices. Prices should be set by market demand and supply.
The CCP also mentioned recent complaints about price increases, stating that the fair market price for DOCs should be around Rs78 per chick, compared to recent prices as high as Rs230 per chick.
