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Poultry Processing & Slaughter / Broilers & Layers
on September 29, 2014

APA Chile is ordered to dissolve because of collusion

The judicial measure also imposes heavy fines on three recognized poultry firms involved

The Defense Court of Free Competition in Chile (TDLC) ordered on September 25 the dissolution of the Chilean Poultry Producers Association (APA), within the expected ruling regarding what has been referred to as the "Chicken Case," denounced by the district attorney's office since November 2011. The case also involves major poultry companies Ariztía, Don Pollo and Agrosuper, which formed a cartel that for 15 years controlled 80 percent of the production of poultry in Chile.

After almost three years of discussions, the TDLC established that "the summoned poultry companies, by demand projections developed in conjunction with the APA, pursued the range in which chicken prices should fluctuate through coordinated definition of a certain level of production."

This was so reviewed by the newspaper Diario Financiero, which also reported on sanctions issued by the same court for poultry producing companies. "The judgment convicted Agrosuper and Ariztía to pay the maximum fine according to law of about US$25 million and US$10 million, respectively. Likewise, the dissolution of the Poultry Producers Association of Chile (APA) was ordered, which acted as coordinator of the cartel. Finally, imposed only to Agrosuper was the obligation to previously consult any operation of concentration in this market in which they participate."

Spokesmen for all entities involved in the Chicken Case (APA, Agrosuper, Ariztía and Don Pollo), simultaneously announced that they will examine the measures and resources to reverse this ruling. Felipe Vial, APA attorney, told Diario Financiero "we disagree with the court's ruling and we will study the legal action to be taken."

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