The Competition and Consumer Protection Commission – CCPC has noted with concern that the Poultry Association of Zambia – PAZ and Millers Association of Zambia – MAZ have continued to exhibit behavior of agreeing and subsequently announcing the prices of day old chicks and mealie-meal.
This development comes after PAZ and MAZ were cited of having issued media statements in which they announced the possible hike in the prices of day old chicks and mealie-meal on 28th and 29th October 2019 through the media which has been construed as price signaling.
In a statement availed to the Zambian Business Times – ZBT, CCPC Director, Restrictive Business Practices, Naomi Fulaza said the commission has found the conduct to be likely a violation of sections 8 and 9 of the Competition and Consumer Protection (CCPC) Act No. 24 of 2010, which clearly prohibits concerted practices and cartelistic conduct by players and members of the Associations.
She added that the commission also noted that the conduct by the two Associations signals price direction and creates anticipation on the market which is unnecessary and may distort independent decision making on pricing of day old chicks and mealie-meal by individual market players.
Fulaza further stated that both PAZ and MAZ have cases before the CCPC tribunal relating to similar conduct. She said the commission has since warned PAZ and MAZ not to engage in conduct that is likely to prevent, distort or restrict competition such as price fixing.
‘‘It is very sad and unfortunate that Associations such as PAZ and MAZ can continue to make pronouncements related to price increment when the commission has engaged them on the ills of such conduct. We would expect that such Associations should be in the forefront of ensuring that their members abide by the laws of the land,’’ she said.
CCPC is mandated by law to enhance competition and promote consumer welfare for the growth of the economy and benefit of the people of Zambia. This is according to the statement on November 5 made available to Zambian Business Times – ZBT, by CCPC Public Relations Officer, Namukoko Kasumpa.
some members of the public have accused CCPC of being toothless as the commission has been more of a warning commission than taking actual fines and punitive measures to prevent market price manipulation.
