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CCP Exposes Price-Fixing Cartel in DOC Market, Highlights Impact on Poultry Prices
The CCP uncovers a cartel in the DOC market involving eight major hatcheries, fixing prices via WhatsApp. This price-fixing has inflated poultry costs, with DOC prices surging by 346% between 2020-2021.
ND
by News Desk
2025-04-30
CCP Exposes Price-Fixing Cartel in DOC Market, Highlights Impact on Poultry Prices

The Competition Commission of Pakistan (CCP) has revealed a major cartel operating within the poultry sector, particularly in the market for Day-Old Chicks (DOCs). Following concerns raised by the National Price Monitoring Committee over rising perishable product prices, the CCP initiated a suo motu inquiry into the matter. The investigation uncovered that eight major hatcheries had been colluding to fix prices for DOCs, contributing to inflated poultry prices across the country.

The hatcheries named in the CCP’s report include Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group. These companies coordinated their pricing strategies through a WhatsApp group titled “Chick Rate Announcement,” which was administered by a senior official from Big Bird Group. Dr. Shahid, the Marketing Manager of Big Bird Group, played a key role in coordinating daily price updates for the cartel members.

From 2019 to 2021, the cartel engaged in 198 discussions on DOC prices, exchanging price-sensitive information via WhatsApp and text messages. The CCP’s investigation found that between March 2020 and April 2021, the price of DOCs surged by 346%, rising from Rs17.92 to Rs79.92 per chick. This sharp increase in DOC prices was a significant factor in driving up the overall cost of poultry in the market.

The CCP’s inquiry found that the cartel’s actions were in direct violation of Section 4 of the Competition Act 2010, which prohibits price-fixing, controlling supply, or restricting production through collusion. The CCP condemned the actions of these hatcheries, calling it a “shameful exploitation of society” that harms competition in the market and burdens consumers with inflated prices.

The CCP emphasized that trade associations are meant to support the development of sectors, not to facilitate illegal activities like cartelisation. Price-fixing, they argued, distorts the market and undermines the principle of free competition. The Commission also highlighted that the fair market price for DOCs should be around Rs78 per chick, far below the inflated prices of up to Rs230 per chick that have been observed recently.

In light of these findings, the CCP has urged anyone aware of similar anti-competitive practices within trade associations to file a complaint through the Commission’s complaint portal. The CCP has reiterated its commitment to taking strong action against any parties involved in price-fixing and market manipulation.
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FoodPrices

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