Probe into meat supplier collusion

THE COMPETITION Commission raided 13 premises belonging to seven meat suppliers in three provinces in an investigation into the alleged price fixing.

The commission said it was conducting simultaneous search and seizure operations probing alleged contraventions of the Competition Act by Karan Beef, Sparta Foods, Chalmar Beef, Beefmaster Kimberley, Morgan Beef, Beefcor and Fabvleis Midland Meat.

The companies – operating from Gauteng, the Free State and Northern Cape – purchase weaner calves from farmers in order to bulk-feed them in preparation for slaughtering in the production of beef.

The suppliers are alleged to have an agreement to fix the prices at which they sell meat to wholesale and retail customers.

Spokesperson Sipho Ngwema said: “The commission remains committed in its quest to fight collusion in the food sector as a whole, as higher prices of food affect the most vulnerable and poor households, who spend a disproportionately high percentage of their income on food.” – ANA