No South African poultry producer has been accused of anti-competitive behaviour, clarified the SA Poultry Association (SAPA), in response to media reports about the Competition Commission’s market inquiry into the industry.
In a letter published in Business Day, SAPA’s Izaak Breitenbach set out what the Competition Commission was, and wasn’t, investigating. He stressed that the Commission was conducting a general inquiry into the level of competition across the poultry industry value chain, without any accusations made against particular companies.
Business Day had given the impression that the Commission’s inquiry targeted alleged anticompetitive practices by South Africa’s four largest poultry producers, Breitenbach said.
“That is not so. The inquiry terms of reference aren’t confined to a limited number of firms — it is a general, market-wide inquiry into the poultry sector as a whole, to determine whether ‘any market features impede, restrict or distort competition’.
“The inquiry’s scope extends across the value chain, covering the international competitiveness of the local industry, the role of retailers, and structural and environmental factors affecting competition, such as elevated feed costs and disease outbreaks.
“Accordingly, the inquiry is focused on the general state of competition, the levels of concentration and structure of the industry without necessarily referring to the conduct or activities of any particular named firm.”
To date there had been no complaints, findings or prima facie evidence of misconduct made against any participant in the industry, Breitenbach stated.
The Poultry Market Inquiry is one of twelve market inquiries so far, ranging from banking, healthcare and retail, to many smaller industries such as polymers, LPG and fresh produce.
