Your recent article conveyed the impression that the Competition Commission’s terms of reference with respect to its poultry market inquiry target alleged anticompetitive practices by the four largest poultry producers (“SA’s big four poultry giants face antitrust probe”, October 2).
That is not so. The terms of reference aren’t confined to a limited number of firms — it is a general, marketwide inquiry into the poultry sector as a whole, to determine whether “any market features impede, restrict or distort competition”.
The inquiry’s scope extends across the value chain, covering the international competitiveness of the local industry, the role of retailers, and structural and environmental factors affecting competition, such as elevated feed costs and disease outbreaks.
Accordingly, the inquiry is focused on the general state of competition, the levels of concentration and structure of the industry without necessarily referring to the conduct or activities of any particular named firm.
To date there have been no complaints, findings or prima facie evidence of misconduct made against any participant in the industry.
Izaak Breitenbach
CEO, Broiler Organisation of SA Poultry Association
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