The Competition Commission of Pakistan (CCP) has imposed a collective fine of Rs. 155 million on eight major poultry hatcheries for cartelization and price-fixing of day-old broiler chicks (DOCs).
The CCP took suo motu notice of cartelization in the day-old chick (DOC) market and initiated a comprehensive inquiry. The investigation found that major hatcheries — including Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir’s Group — engaged in coordinated price-fixing, in violation of Section 4 of the Competition Act, 2010.
How the Cartel Operated
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The hatcheries formed a cartel and discussed prices in a WhatsApp group called “Chick Rate Announcement,” administered by a senior official of Big Bird Group.
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Dr. Shahid, Marketing Manager at Big Bird Group, coordinated the daily price updates. He shared the next day’s prices daily via phone texts or WhatsApp messages with group members.
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Dr. Abdul Karim, Chairman of the Hatchery Affairs Committee of the Pakistan Poultry Association (PPA), and Major (R) Syed Javaid Hussain Bukhari, Secretary General of the PPA, were also part of the group.
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Group members actively discussed and shared next-day prices approximately 198 times between 2019 and 2021. Price-sensitive information was exchanged 108 times via text messages and 87 times through WhatsApp.
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Senior officials of the Poultry Association who were part of the group did not stop the sharing of price information, thereby facilitating the collusion.
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The cartel regularly announced uniform DOC rates for Punjab, which, with minor freight adjustments, also influenced rates in Multan and Karachi.
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Between March 2020 and April 2021, the price of DOCs surged by 346 percent — from Rs. 17.92 to Rs. 79.92 per chick — contributing significantly to broiler meat price inflation.
The CCP stated that Section 4 of the Competition Act, 2010, prohibits collusive arrangements to fix prices, control supply, or restrict production, as such practices damage market competition. It emphasized that trade associations are intended to develop their respective sectors — not to share price-sensitive information or facilitate cartelization. Price-fixing through such associations represents a serious market distortion and an exploitation of consumers. Prices, it stressed, must be determined by free market demand and supply.
The CCP also noted fresh complaints indicating that hatcheries may once again be engaging in collusion. Prices of day-old chicks have recently surged to as high as Rs. 230 per chick, despite the fair market value being around Rs. 78 per chick.
The Commission warned that cartelization harms competition, inflates food prices, and constitutes a shameful exploitation of society. It urged citizens to report any anti-competitive practices by trade associations through CCP’s complaint portal.
