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AMIE Lodges Complaint Against Poultry Association

12 July 2013

SOUTH AFRICA - AMIE has lodged a complaint with the Competition Commission of South Africa in terms of section 49B of the Competition Act. This complaint has been lodged against the South African Poultry Association and local frozen chicken producers.

The complaint relates to the use of ITAC and customs duties to remove import competition from the market, price manipulation in vertically integrated businesses, exclusionary practices in the transport of frozen chicken and anti -competitive and collusionary brining practices.

The Competition Commission has acknowledged receipt of the complaint and assigned a case number.

This Complaint by AMIE follows discussions between AMIE and the Competition Commission which resulted in this action.

The Competition Commission has recently been quoted as saying: "The poultry sector in South Africa may be a "good candidate" for a market inquiry — one similar to that the commission is about to embark on in the private healthcare sector."

Trudi Makhaya, deputy commissioner of the commission, said that under the amended Competition Act it may conduct formal inquiries into the state of competition in any market where it believes some features may prevent, distort or restrict competition.

FAWU (Food and Allied Workers Union) also said: "FAWU will particularly appreciate the outcome of the study on the impact of employment in the import value and processing chain in the local poultry industry."

There is widespread concern and support for an in-depth investigation into the South African Chicken Industry as has been called for by AMIE in a plea to the Ministers of Trade and Industry and Economic Development during May/June 2013.

AMIE is of the firm opinion that a full "market enquiry" should be initiated to determine exactly what the weaknesses are and what support,if any, may be required by the local chicken industry.

According to AMIE, the consequences of the investigation will result in increased prices which will have a devastating impact on consumers - especially those already struggling to meet the demands of higher fuel and energy costs.

TheMeatSite News Desk

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