CCP steps in over surge in day-old chick prices

January 20, 2025 (MLN): The Competition Commission of Pakistan (CCP) has taken notice of the significant rise in the prices of Day-Old Chicks (DOC) and has advised hatcheries to avoid any anti-competitive practices prohibited under the Competition Act 2010.

DOC producers have also been encouraged to allow prices to be determined by market forces, guided by the principles of supply and demand.

Hatcheries are also instructed to provide detailed records of daily DOC prices for the past few months, including the current month.

This move comes after several complaints regarding potential price manipulation and possible collusion in the sale of DOCs, according to the press release.

Reports show a staggering 250% increase in DOC prices, with rates rising to Rs220 per chick from the average of Rs50-60 per chick.

The CCP is investigating whether this sharp and disproportionate price hike, occurring without any significant changes in market conditions, is the result of anti-competitive practices by DOC producers.

It is important to note that many complaints highlight the absence of DOCs from the essential commodities list maintained by provincial livestock ministries, leaving their pricing solely at the discretion of suppliers.

In contrast, broiler chicken, categorized as an essential commodity, has its prices regulated by the District Government.

This underscores the pressing need for greater transparency and accountability within this vital segment of the poultry sector.

The CCP has already taken action to address similar concerns.

In December 2021, the Commission conducted an in-depth inquiry into the poultry sector, uncovering allegations of price fixing and cartelization involving eight DOC-producing companies, which collectively control over 50% of the market.

Show Cause Notices were issued, and hearings are currently ongoing with the parties involved.

Copyright Mettis Link News