The Federal Competition and Consumer Protection Commission (FCCPC) on Wednesday accused cartels in the poultry and packaging industry of manipulating the market to keep prices high despite various government interventions.

This was disclosed by the FCCPC through its page Xin what the Commission described as a “stunning revelation” by its CEO, Mr. Tunji Bello, during a stakeholders’ meeting in Uyo, part of FCCPC’s nationwide drive against predatory pricing.

The FCCPC said its findings in Uyo were based on a nationwide investigation.

Price fixing

According to the statement, Bello said a poultry cartel, made up of big operators, dictates the prices at which smaller players must sell their products.

“Small poultry owners used to sell a day old chick for between N480 and N590 and still make a profit. But after the arrival of two big players in the market, things changed. I choose to withhold their names for now.

“They (the big players) brought in substantial funds, expanded the market and soon controlled 80 to 90 percent of the poultry market in the area,” Bello told an audience of industry leaders, SMEs, market representatives, farmers, transporters, service providers and NGOs.

Bello stated that two unnamed major poultry players have leveraged their financial power to dominate the local poultry farmers association, now setting the price of a day-old chick at N1,350.

Bello noted that this development contradicts the economic principle of economies of scale, which suggests that increasing output should reduce unit costs.

“For the past one year, the Federal Ministry of Agriculture and Food Security has supported poultry farmers with broilers, vitamins, feed and cash through interventions in the six geopolitical zones of the nation.

“Despite these efforts, the prices of poultry products continue to rise. For instance, the 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. the statement reads in part.

More perspectives

The FCCPC chief also pointed out that the high prices of drinks in recyclable packaging were largely due to “unfair prices” set by a cartel in the packaging sector.

“The packaging cartel consists of five major players who supply packaging materials to local manufacturers. They operate in a mafia-like manner, so if you try to get a price check from a competitor, the first seller alerts the second to offer the same price.” Bello explained.

• On the delay in punishing offenders, Bello said the FCCPC prefers dialogue as the first approach rather than imposing harsh punishments such as heavy fines or jail terms.
• He urged Akwa Ibom’s business community to work with the FCCPC to reduce exploitation prices and help regulate market practices.

“It is only fair that our businessmen share their gains with consumers in the form of reduced prices,” Bello added.

• According to the statement, Bello said President Bola Tinubu has introduced several relief measures, including the removal of tariffs on food imports, VAT exemptions for pharmaceuticals and medical devices, and tax exemptions for businesses and public transport to cushion the effects of economic reforms. in progress.

He also mentioned the availability of soft credit for converting vehicles from petrol to CNG as part of the federal government’s policy reforms.

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