Two of the country’s largest poultry companies have been fined for manipulating the Bangladeshi broiler market in 2022.
Following two cases investigated by the Bangladesh Competition Commission, the penalties for Kazi Farms and Suguna Foods are 50 million taka (BDT; US$453,000) and BDT34.4 million, respectively.
According to a member of the Commission, the fines were levied following the commission's finding of abnormal price hikes of broiler chicken resulting from syndication, reports The Business Standard.
Both companies are required to pay their fines within 10 working days, with additional amounts payable for each day’s delay.
A senior official for Kazi Farms denied the charges of collusion.
“Our auction process is a transparent, fair means of discovering the daily market price,” he said. “We will appeal this decision and expect to be found innocent.”
For Suguna Foods’ poultry business in Bangladesh, the charges are baseless.
According to The Daily Star, the firm’s country head said that it had revealed all of its data to the Commission. He said that Suguna Foods will also appeal.
In August of this year, the government of Bangladesh was reported to be looking into a range of measures to keep key food products affordable for the population, as well as to stabilize the domestic poultry industry.
In the latest survey from WATTPoultry on Asia’s leading egg companies, Kazi Farms of Bangladesh was the fifth largest in the region. With 12.7 million hens. It is the top producers in the country.
Slaughtering 517 million birds annually, India-based Suguna Foods is an integrated company marketing live broilers, as well as egg products and frozen chicken products. It ranks at 14 in the rankings of the world’s largest broiler producers, according to WATTPoultry.com’s Top Poultry Companies survey..
Investigation turns to Bangladesh egg market
In August of last year, the Bangladesh Competition Commission initiated an investigation into the pricing of a wide range of daily essentials. Allegations were made that selling prices were being inflated by manufacturers in order to make higher profits, while blaming the price hikes on the war in Ukraine.
Prices had jumped sharply in the preceding months, according to The Financial Express.
There was a public outcry when egg prices rose to BDT180 per dozen, and a kilo chicken cost BDT300.
According to the chair of Commission, the substantial fines on the two poultry companies are intended to deter others from unfair market practices, while safeguarding the interests of consumers.
When egg prices rose again in August of this year, 10 companies and related organizations were served with complaints from the body. It alleged that they were colluding to manipulate the egg market.
The source identifies the organizations involved in the latest investigation as Kazi Farms, Paragon Poultry Ltd, Diamond Egg, Peoples Poultry and Hatchery, Naba Farm, Bangladesh Poultry Industries Central Council, Bangladesh Poultry Industries Association, Bangladesh Poultry Farm Protection National Council, Poultry Professionals Bangladesh and United Egg Sale Point.
In recent weeks, the government of Bangladesh has granted permission for a number of companies to import 150 million eggs in a bid to bring down market prices.
The same source reports that, until these imports start, prices have become even more volatile. Supplies are scheduled to come in within a few days.
Daily domestic production amounts to around 40 million eggs, local importers say.
