CompCom to look at pricing, integration, imports, contract farming, retail, and transformation.
JSE-listed Astral Foods says it will engage constructively with the Competition Commission’s poultry market inquiry and welcomes the opportunity for meaningful dialogue.
In a statement issued on Friday, the group – one of the most significant poultry producers in the country – said it had already made representations to the commission in March 2024, a month after the regulator’s announcement of the intended inquiry.
South Africa’s competition watchdog first announced plans for an inquiry into the poultry value chain – covering chicken meat and eggs – in February 2024.
On Monday, the commission published the final terms of reference in the Government Gazette, setting out the scope, process and timelines.
The inquiry will examine a range of issues, including pricing and access, vertical integration, imports and competitiveness, contract farming, retail and downstream markets, as well as transformation in the sector.
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In its terms of reference, the commission noted: “The four largest chicken producers … Astral, RCL, Country Bird, and Sovereign, account for nearly 63% of South Africa’s chicken production.”
Astral Foods points out that the Competition Commission did not refer to the conduct or activities of “any particular firm”. As a listed poultry producer and member of the South African Poultry Association (Sapa), Astral says it intends to outline the “significant contributions of integrated poultry production” in South Africa.
“[P]articularly its role in strengthening food security and creating sustainable employment opportunities.
“Astral wishes to remind all stakeholders that this inquiry is not an investigation into anti-competitive behaviour,” it states.
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The commission has indicated that the inquiry will make use of public hearings, requests for information, and summons powers to gather evidence. Stakeholders and the public will be invited to make submissions.
According to the commission, poultry is South Africa’s largest agricultural subsector, accounting for 17.8% of agricultural output and employing around 134 000 people.
This article was republished from Moneyweb. Read the original here.
