Investigation By FCCPC Unveils Price-Fixing Cartels In Poultry And Packaging

Investigation By FCCPC Unveils Price-Fixing Cartels In Poultry And Packaging
The Federal Competition and Consumer Protection Commission (FCCPC) has revealed the extent of cartel influence in Nigeria’s poultry and packaging sectors, demonstrating how major companies manipulate prices to keep costs high for consumers.

During a stakeholders’ meeting in Uyo, Akwa Ibom State, FCCPC Executive Vice-Chairman and CEO, Tunji Bello, shared insights as part of the commission’s campaign against exploitative pricing practices.

Bello explained that two dominant companies in the poultry industry dictate the minimum price for day-old chicks, pressuring smaller traders to sell at inflated rates. “Previously, smaller poultry owners could sell a day-old chick for between ₦480 and ₦590 profitably,” he noted. “Now, they are forced to sell at ₦1,350 per chick due to control by these larger players.”

He also addressed the packaging sector, where cartels have driven up costs in the beverage industry. Bello stated that five major companies coordinate prices, preventing competitive pricing. “If a manufacturer tries to negotiate a better price with a different supplier, the cartel ensures prices remain consistent across all members,” he explained.

Despite government initiatives, including grants and assistance to local farmers, poultry prices continue to escalate due to these monopolistic practices. “For instance, starter mash prices soared from ₦11,000 in October 2023 to ₦23,500 this year,” he highlighted, emphasizing the negative impact on consumers.

While the FCCPC prefers dialogue over immediate enforcement, Bello noted that the FCCPC Act allows for significant fines and even imprisonment for those engaging in exploitative practices. He urged businesses to pass the benefits of recent economic relief measures introduced by President Bola Tinubu onto consumers by reducing prices.

The FCCPC remains committed to ensuring fair pricing and protecting consumers from the adverse effects of price manipulation by powerful market players.

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