The Competition Commission of Pakistan (CCP) has imposed a hefty Rs150 million fine on eight leading poultry hatcheries for colluding to inflate chick prices a move that directly impacted chicken rates for consumers.
The CCP’s investigation revealed that the hatcheries were part of a coordinated cartel, using a messaging group called “Chick Rate Announcement” to manipulate the prices of day-old chicks. Communications through WhatsApp and SMS were central to this operation.
As a result of this collusion, prices skyrocketed by more than 340%, soaring from Rs17.92 to Rs79.92 per chick. The hatcheries involved operated across Punjab, Multan, and Karachi, and used private channels to synchronize price hikes.
Key Individuals and Associations Involved
Among the most active contributors was Big Bird’s marketing manager, Dr Shahid, who shared updated chick prices 198 times—108 times via SMS and 87 times through WhatsApp.
The CCP also implicated senior members of a poultry association, suggesting that the price manipulation scheme had institutional backing.
Legal Action and Court Endorsement
Two of the implicated companies, Sadiq Poultry and Islamabad Feeds, initially secured a stay order to halt CCP’s proceedings. However, once the court dismissed their plea, the CCP resumed its probe, eventually issuing show-cause notices that led to the Rs150 million penalty.
Importantly, the Lahore High Court upheld the CCP’s authority, reinforcing the regulator’s mandate to take action through the show-cause process.
Dr Kabir Sidhu, Chairman of the CCP, emphasized that trade associations must refrain from price fixing, stating clearly that their purpose should be limited to “member welfare and sector development.” He also urged the public to report any cartel-like activities in any sector, reinforcing the CCP’s commitment to protecting market competition.
