Competition, Consumer Protection Commission Says Poultry Cartel Responsible for Hike in Products
By Dennis Udoma, Uyo
The Federal Competition and Consumer Protection Commission (FCCPC) has said, a cartel in the poultry business the country is responsible for the spike in prices of birds in the industry.
To maintain the upsurge in prices, the body is alleged to have been conniving with the packaging industries too for the illicit and unwholesome practices despite government interventions to maintain stability.
Chief Executive Officer of the Commission, Mr. Tunde Bello disclosed this at a stakeholders meeting in Uyo on Wednesday saying, the FCCPC’s meeting was a continuation of nation-wide advocacy against exploitative pricing in the poultry industry.
The assertion, according to the FCCPC boss, was based on an investigation it had carried out nationwide, which was extended to Akwa Ibom State in line with the sensitization.
He noted that poultry cartel consisting of big holders dictate the price for the small holders to sell their products, revealing the Commission’s finding in one of the major cities.
According to him, “The small poultry owners used to sell a day-old chick for between N480 and N590 and they still made a profit.
“But not after the arrival of two big players in the market. I choose to withhold their names at this point.
“They (big players) brought in big money and expanded the market and expectedly, they were soon in a position to control 80 to 90 percent of the poultry market in the city.”
Mr. Bello, while addressing the participants consisting the market leaders, MSMEs, farmers, transporters, service providers and non-governmental organizations (NGOs) said, big players in the poultry business, “used their clout and financial muscle to hijack the local poultry farmers association and dictated that a day-old chick be sold at N1,350 in a curious reversal of the law of the economy of scale, which otherwise stipulates that the more you produce, the less the unit price.”
This, he said, explained why prices of products continue to surge despite government’s sundry supports to the poultry industry adding that, in the last one year, the Federal Ministry of Agriculture and Food Security has supported poultry farmers with broilers, vitamins, feeds and cash through various interventions across the nation’s six geo-political zones.
“For instance, starter mash which sold for N11,000 in October 2023 rose to N14,000 in January this year, N16,500 in March, N21,500 in July and N23,500 in October.
“Also, the FCCPC boss stated that the high prices of drinks in recyclable packs was substantially caused by ‘unfair pricing'”.
“The cartel in the packaging sector consists of five big players who are in the business of importing and providing local manufacturers with packaging materials.
“They operate in a mafia-like fashion such that if you choose to leave one of them to check the price of the other, before you would reach the next factory, the first seller would have tipped off the second seller to quote the same price,” Bello lamented.
On why those engaged in such sharp practices have not been sanctioned, Bello stated that FCCPC chose dialogue as the first option “in the spirit of democracy” instead of enforcing the FCCP Act which prescribes stiff penalties ranging from heavy fines to jail terms.
He called on the business community in Akwa Ibom to collaborate with FCCPC to curb exploitative pricing formula as well as sanitize the markets dealers.
To cushion the harsh effects of ongoing economic reforms, Bello said President Bola Tinubu has introduced a number relief measures like the removal of tariff on food imports, VAT on pharmaceuticals and medical devices, tax waivers for businesses and public transportation as well as providing easy credit for the conversion of vehicles from petrol to CNG.
“It is only fair that our businessmen and businesswomen and traders share such gains with consumers in form of reduced prices,” the FCCPC boss added.
Many of the speakers expressed concern over the high cost of doing business in the country particularly, the high interest rates, multiple taxation and the increase in electricity tariff as they affect businesses.
They urged the federal government to abolish illegal road blocks to reduce the price of food stuffs and other items.
