CCP slaps Rs155M fine on poultry hatcheries

The Competition Commission of Pakistan (CCP) has imposed a collective fine of Rs155 million on eight major poultry hatcheries for cartelization and price-fixing of day-old broiler chicks (DOCs).

Hatcheries such as Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group were found to be coordinating DOC prices through a WhatsApp group called Chick Rate Announcement. This group was managed by a senior official from Big Bird Group.

According to CCP, Dr. Shahid, Marketing Manager at Big Bird Group, regularly sent next-day chick prices through messages to the group members. Officials from the Pakistan Poultry Association (PPA), including Dr. Abdul Karim and Major (R) Syed Javaid Hussain Bukhari, were also in the group but did not stop this collusive behavior.

From 2019 to 2021, group members discussed and shared DOC prices about 198 times, including 108 times by SMS and 87 times on WhatsApp. These actions caused DOC prices to rise by 346% between March 2020 and April 2021, contributing to a sharp increase in broiler meat prices. CCP warned that such price-fixing disturbs market competition and unfairly burdens consumers. Trade associations are supposed to support their sectors, not manipulate prices.

The Commission also noted new complaints of ongoing collusion, with DOC prices now reaching Rs230 per chick, despite a fair rate of around Rs78. CCP urged citizens to report such practices through its official complaint portal.