February 25, 2010

South Africa investigates poultry cartel

The Southern African Poultry Association and some individual producers are under investigation of alleged market abuse.

Chicken accounts for 60% of animal protein consumed in South Africa.

Nandi Mokoena, manager of the Competition Commission, confirmed that two investigations were underway in which the poultry association and all its past and present members were respondents.

She said they were investigating the possibility of price fixing, market allocation and exclusive supply agreements among association members. The collecting of data started April 2009.

Association chief executive Kevin Lovell said they are using the global model of production, and that they believe none of their practices are in conflict with global practice or local law.

Lovell said none of the producers had applied for leniency because all of them did not believe they had done anything that was anti-competitive.

The commission's corporate leniency policy allows indemnity from prosecution for the first company willing to cooperate fully and assist the commission in gathering information about the alleged cartel activity.

He added that they have provided all the information required.