Poultry collusion fine could bring down chicken prices in Pakistan

ISLAMABAD: The Competition Appellate Tribunal has upheld the Competition Commission of Pakistan’s (CCP) finding that the Pakistan Poultry Association (PPA) engaged in cartelisation, but reduced the penalty from Rs 50 million to Rs 25 million. The tribunal cited a Supreme Court precedent in a similar case. The tribunal directed the association to pay the fine within 15 days.

The ruling closes a long-running legal battle dating back to 2010, when the CCP fined the PPA and its members for colluding to fix poultry product prices in violation of the Competition Act.

The case followed complaints over sharp price increases in poultry products, including day-old chicks, chicken meat, eggs, and feed. Investigations revealed that the price of day-old broiler chicks had surged from Rs 6 to Rs 71.90 per chick by October 2009, far above the estimated production cost of Rs 18.

While the tribunal did not re-examine the merits of the case, it relied on the Supreme Court’s 2022 decision, which had taken a more lenient approach to similar cartelisation penalties. The PPA’s counsel supported the reduction, acknowledging the similarity of circumstances.

Analysts suggest that the tribunal’s decision, coupled with increased scrutiny of poultry pricing practices, may pave the way for greater market transparency and could help moderate prices for consumers in the coming months.

The ruling signals a stronger regulatory environment, potentially reducing the ability of industry players to coordinate prices and easing upward pressure on poultry costs.