ISLAMABAD – The Competition Commission of Pakistan (CCP) has taken major action against eight leading poultry hatcheries, including Big Bird Group for colluding to artificially increase the prices of day-old chicks.
A fine of Rs. 150 million has been imposed on the companies for prima facie violation of Section 4 of the Competition Act, 2010. The other companies include Pakistan Poultry Association, Sadiq Poultry, Hi-Tech Group of Companies, Islamabad Group of Companies, Olympia Group, Jadeed Group of Companies, Supreme Farms, and Sabir Group.
According to the CCP, the price of day-old chicks was raised by up to 346 percent, directly contributing to a surge in chicken prices in the market.
Investigations revealed that the hatcheries were coordinating daily price fixing through a WhatsApp group named “Chick Rate Announcement.”
The Commission reported that Dr. Shahid, Marketing Manager of Big Bird, routinely shared new prices. These prices were circulated a total of 198 times via digital communication—108 times through text messages and 87 times through WhatsApp.
The report further disclosed that senior officials of the Poultry Association were also involved in the cartelization. The cartel determined daily rates for Punjab, Multan, and Karachi. The price of a chick rose dramatically from Rs17.92 to Rs79.92.
Sadiq Poultry and Islamabad Feeds had obtained a stay order against CCP’s proceedings; however, after the stay was vacated, the Commission completed its showcause process and imposed penalties. The Lahore High Court upheld CCP’s authority to take action based on showcause notices.
CCP Chairman Dr. Kabir Sidhu warned trade associations against engaging in price fixing. He emphasized that the role of such associations should be limited to the welfare of their members and sectoral development, or else they would face strict legal action.
Dr. Sidhu also appealed to the public to report any instances of cartel behavior or price manipulation in any sector to the Commission.
