The 5 Suppliers Alleged In Poultry Feed Price Fixing Have 30 Days To Respond

The Malaysia Competition Commission has today issued a Proposed Decision against the following five enterprises for infringing section 4 of the Competition Act 2010 where parties are not to enter into anti-competitive agreements.

The 5 companies are:
i. Dindings Poultry Development Centre Sdn. Bhd.;
ii. FFM Berhad;
iii. Gold Coin Feedmills (Malaysia) Sdn. Bhd.;
iv. Leong Hup Feedmill Malaysia Sdn. Bhd.; and
v. PK Agro-Industrial Products (M) Sdn. Bhd.

According to MyCC, a Special Task Force tabled its investigation report to the Members of Commission led by its Chairman, Dato’ Seri Mohd Hishamudin Md Yunus upon which after careful evaluation had provisionally found that the said enterprises have infringed section 4 of the Competition Act 2010 by entering into anti-competitive agreements and/or concerted practices in increasing the price quantum of poultry feed that contains soybean meal and maize as its main ingredients, between early 2020 and mid-2022.

Investigations revealed that the sensitive commercial information shared between the said enterprises is seen to potentially distort competition in the market. By adjusting prices at the same quantum, which results in similar increments amongst the
enterprises, the choices of customers in choosing their preferred poultry feed supplier that offers the best value may be restricted. the body said. Therefore, the conduct of the said enterprises could potentially lead to an anti-competitive landscape in the supply chain of the poultry industry.

MyCC added that poultry feed is a major contributor to the cost of poultry farming, contributing approximately 72.8% of the total cost. Hence, where competition is distorted in the poultry feed market, the entire supply chain in the industry would be affected. Consumers, being at the end of that supply chain, are most affected.

As for the notices, it reminded that the findings are provisional and it should not be assumed that any enterprise has broken the law at this stage. The five enterprises have been given the opportunity to submit their representation within 30 days from the date of service of the Proposed Decision. They may opt to present their representation orally on a date that will be determined later upon receiving their written submissions.

Upon hearing and considering the representations together with the evidence gathered during the investigation, MyCC will only then issue its final decision on whether there is a finding of infringement or non-infringement of the Competition Act 2010. The finding of an infringement will allow MyCC to impose a financial penalty of up to 10% of the parties’ worldwide turnover during the period of infringement. On top of the penalty, MyCC has the discretion to impose any other appropriate directives that MyCC sees fit.

“It is crystal clear under the Competition Act 2010 that enterprises should not enter into any agreement, exchange commercially sensitive information on prices or engage in any concerted practice to prevent, restrict or distort competition. They should, instead,independently determine their respective conduct and facilitate a competitive landscape
in the market.”

“Anti-competitive agreements or also known as cartel agreements cause significant damage to the economy as well as to consumers at large. Cartel is the supreme evil of competition. The fight against cartel is not over and we need all hands-on deck in this fight. We invite the public to work together with MyCC in bringing cartel conduct to light,” said Mr. Iskandar Ismail, Chief Executive Officer of MyCC. MyCC reaffirms its commitment in ensuring that justice is not only served but also seen to be served. The public and the members of media are urged to let the law take its course and lay all speculation to rest.

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