ISLAMABAD - Coming back to the mark set by former Chairman Khalid Mirza, Competition Commission of Pakistan (CCP) under its new leadership Rahat Kounain took proactive measures against violations by issuing show cause notices to 18 poultry feed mills. According to an official press release issued here on Monday, the Competition Commission of Pakistan (CCP) has issued show cause notices to 18 poultry feed mills for prima facie involvement in cartelisation and collusive price fixing practices. These are clearly prohibited under Section 4 of the Competition Act 2010. The feed mills which have been issued show cause notices include: Kausar Feeds (Pvt) Ltd, Big Feed (Pvt) Ltd, Punjab Feeds (Pvt) Ltd, Lahore Feed (Pvt) Ltd, Pak Feed Industries (Pvt) Ltd, Islamabad Feeds (Pvt) Ltd, Supreme Feeds (Pvt) Ltd, Hi- Tech Feed (Pvt) Ltd, Shahzor Feeds (Pvt) Ltd, Asia Poultry Feeds (Pvt) Ltd, Sharif Feeds (Pvt) Ltd, Chakwal Feeds (Pvt) Ltd, Punjnad Feeds (Pvt) Ltd, National Feeds (Pvt) Ltd, Crescent Feeds (Pvt) Ltd, S.B Feeds (Pvt) Ltd, Kashmir Feeds (Pvt) Ltd, Premium Feeds (Pvt) Ltd. The poultry feed mills have been asked to submit their written arguments within fifteen days, and to appear before the Commission on 23 and 24 November 2010. All these mills are members of Pakistan Poultry Association (PPA). These show cause notices come in the aftermath of the recent PKR 50 million fine imposed by CCP on the PPA for cartelising the poultry industry. Earlier the CCP undertook investigation of the Pakistans poultry industry based on news reports pertaining to high prices of day-old chicks and exorbitant increase in the prices of poultry feed. The news reports claimed that the increases were the result of cartelisation among the poultry hatcheries owners and the poultry feed manufacturers, respectively. Upon preliminary investigation, the CCP observed that Pakistan Poultry Association served as the nerve centre that connected the different sectors of the poultry industry, including feed manufacturers, breeders, hatcheries and broiler and layer farms. The CCP Enquiry Committee discovered that information relating to rates of various poultry products, such as chicken meat, eggs, feed etc, was being displayed on the official website of PPA and that these rates were being updated on the website on regular basis. The website also contained circulars relating to price of poultry feed and minutes of meeting relating to increase in prices of day old chicks. Based on the preliminary observations of the Enquiry Committee and the initial evidence, the Commission authorized search and inspection of PPAs offices in Islamabad, Lahore and Karachi, which were conducted on 24 and 25 May 2010. During the search and inspection, the CCP officials impounded important documents for further investigation. The documents prima face indicated that PPA, its committees, and their members regularly engaged in discussions and deliberations regarding production and pricing of poultry products and took decision on those matters. In its show cause notice, CCP has stated that based on its prima facie findings, the poultry feed mills appears to have entered into an agreement amongst themselves and with other PPA members with regards to pricing, production and sale of poultry feed which prima facie violates Section 4 of the Ordinance. Pakistans poultry industry comprises several sectors that are interconnected, with each having a stake in each other. The different sectors include feed manufacturers, breeders, hatcheries, broiler farms and layer farms.