FCCPC Uncovers Price-Fixing Cartels In Poultry And Packaging Industries
The Federal Competition and Consumer Protection Commission (FCCPC) has exposed the influence of cartels in Nigeria’s poultry and packaging sectors, revealing how major players manipulate prices to maintain high costs for consumers.
FCCPC’s Executive Vice-Chairman and CEO, Tunji Bello, disclosed these practices on Wednesday during a stakeholders’ meeting in Uyo, the Akwa Ibom State capital, as part of the commission’s advocacy campaign against exploitative pricing.
Bello explained that in the poultry industry, two dominant companies control pricing by dictating the minimum price for day-old chicks, forcing smaller traders to sell at inflated prices.
“Smaller poultry owners used to sell a day-old chick for between ₦480 and ₦590 and still turned a profit,” he said, “but now, the price is controlled by two large players who set it at ₦1,350 per chick.”
The FCCPC head also highlighted how cartels in the packaging industry have contributed to rising costs in the beverage sector.
Bello stated that five major players dominate the packaging sector, coordinating prices to prevent competitive pricing.
“If a manufacturer tries to check prices at a different supplier, the cartel ensures the price remains the same across all members,” he explained.
Despite government support measures, including grants, feeds, and cash assistance to local farmers, poultry prices continue to rise due to these practices.
“For example, starter mash prices rose from ₦11,000 in October 2023 to ₦23,500 by October this year,” Bello said, underscoring the impact of monopolistic pricing on consumers.
The FCCPC prefers to initiate dialogue rather than enforce penalties immediately, Bello noted, though the FCCPC Act allows for substantial fines and imprisonment for exploitative practices.
He urged businesses to pass on the benefits of recent economic relief measures introduced by President Bola Tinubu to consumers by lowering prices.
The FCCPC has committed to continuing its efforts to ensure fair pricing and protect consumers from the impact of price manipulation by powerful market players.
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