Central Poultry defy government, yet to pay fine for misusing market power

Over a month after being handed several fines for unconscionable conduct and misuse of market power in the supply of day old chicks, Central Poultry (2000) Limited to honour them.
On April 29, the Competition and Fair Trading Commission (CFTC) fined the company K500, 000.00 for unconscionable conduct and misuse of market power in the supply of day old chicks and another K500, 000.00 for engaging in misleading conduct.

Acting Executive Director Apoche Itimu: Fines must be paid
A source at CFTC has confirmed that despite other companies honouring their fines, Central Poultry (2000) Limited has been dodging the same.
“The management has been playing hide and seek, we don’t know why because they have never indicated if they are going to appeal,” said the source who spoke on a condition of anonymity.
Efforts to get a comment from Central Poultry (2000) Limited proved futile as they could not be reached on their mobile numbers.
According a CFTC report released, the commission launched investigations against Central Poultry (2000) Limited after receiving two complainants in the matter.
“The Commission found that one complainant ordered 160 day old chicks from Central Poultry at a total cost of MK104, 000.00 and paid a deposit amount of MK90, 000.00. When she went to collect the chicks, Central Poultry requested her to pay a top-up amount of MK8, 000.00 on the premise that the Respondent had increased prices.
“Another complainant ordered 110 broiler chicks from Central Poultry and paid a total sum of MK66, 000.00. However, prior to the agreed date of collection, Central Poultry requested her to make an additional payment of MK11, 000.00, also on the premise that the price had increased,” reads part of the report
Following deliberations, according to the report, CFTC found the company not liable for unconscionable conduct but liable for misuse of market power.
The commission then ordered Central Poultry (2000) Limited to refund the first complainant a total sum of MK8,000.00, refund the second complainant a total sum of MK11,000 and pay a fine of MK500,000.00 for engaging in abuse of market power or market dominance.
The company was also found guilty of selling bags of poultry feed which were grossly underweight at CP Feeds shop in Lilongwe.
“Following deliberation, the Commission found the Respondent liable and issued the following ordered the Respondent to pay a fine of K500, 000.00 for engaging in misleading conduct,” reads the report`
For sometime, the company has been at loggerheads with small scale poultry farmers for monopolizing the market.
The company is mostly accused of selling chicks and feed to the farmers at a higher price, but at the same time, competing with the on the market by selling chickens at a lower price.

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