January 12, 2024

 

Malaysian poultry firms appeal against alleged chicken feed cartel fines

 
 

 

Leong Hup Feedmill Malaysia (LFM) and Dindings Poultry Development Centre (DPDC) have lodged appeals against the Malaysia Competition Commission's (MyCC) recent decision to impose substantial fines on the companies for alleged participation in a chicken feed cartel, The Edge reported.

 

MyCC had levied a penalty of MYR 157.47 million (US$33.8 million) on LFM, while DPDC faced another fine of MYR 70.02 million (US$15.07 million). Both companies have taken swift action, filing appeals to contest the commission's decision.

 

Leong Hup International, the parent company of LFM, has officially sought a stay on the MyCC decision pending the outcome of their appeal, as announced in a filing with Bursa Malaysia on Tuesday. Similarly, Malayan Flour Mills (MFM), which holds a 51% stake in DPDC through a joint venture, made a separate announcement confirming their appeal and the application for a stay.

 

MyCC, on December 22, 2023, issued record fines totalling MYR 415.5 million (US$89.4 million) on five feed millers, including LFM and DPDC, for their alleged involvement in a chicken feed cartel aimed at fixing poultry feed prices.

 

Other companies penalised were FFM, Gold Coin Feedmills, and PK Agro-Industrial Products.

 

Leong Hup, in a filing on the same day as the MyCC announcement, staunchly denied its involvement in the alleged price-fixing practice, asserting that MyCC's findings were without merit. MFM echoed a similar sentiment on December 26, 2023, denying DPDC's engagement in the purported cartel practice.

 

Share values for Leong Hup saw a modest increase, while MFM's shares remained steady following the developments.

 

-       The Edge

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