South Africa’s Competition Commission said it raided the offices of several meat suppliers in the country today (14 June) as part of an investigation into alleged price-fixing.
According to the Commission, the companies – Karan Beef, Sparta Foods, Chalmar Beef, Beefmaster Kimberley, Morgan Beef, Beefcor and Fabvleis, trading as Midland Meat – are suspected of “collusion in fixing prices and trading conditions in the purchase of weaner calves from farmers”.
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The Commission said the suppliers purchase weaner calves from farmers in order to bulk feed them in preparation for slaughtering in the production of beef.
The suppliers, who sell beef to wholesale and retail customers, are also alleged to have conspired to fix prices at which they sell meat.
The Commission said South Africa’s meat industry “forms an important part of the food sector” which is one of the Commission’s “priority sectors”. “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.”
A spokesperson for Karan Beef told just-food: “We welcome the investigation but we are not commenting further at this stage.” A Beefmaster spokesperson told just-food it is not responding to the allegations “at this stage”. A spokesperson for Morgan Beef said: “We welcome the investigation and are making no other comment at this time.”
The other companies under investigation by the Commission had not responded to requests for comment at the time of publication.
