Competition authorities swoop in on suspected meat cartel

Johannesburg – Seven meat suppliers have been raided by the Competition Commission due to alleged price fixing.

According to a statement issued by the commission 13 operations belonging to the suppliers in Gauteng, Free State and Northern Cape were raided on Wednesday morning.

The suppliers have allegedly been engaging in price-fixing and anti-competitive trading conditions, according to the commission.

The suppliers include Karan Beef, Sparta Foods, Chalmar Beef, Beefmaster Kimberley, Morgan Beef, Beefcor and Fabvleis.

These suppliers are also known as feedlots, which purchase weaner calves from farms and then bulk feed them for slaughtering. The beef is also sold to wholesale and retail customers, the commission explained.

It is alleged that the suppliers have entered into an agreement to fix prices and trading conditions when purchasing these weaner calves. They have also allegedly fixed the process to sell meat to wholesale and retail customers. 

Earlier this year the commission also raided the fresh produce suppliers over price fixing.

READ: Competition Commission raids fresh produce market 'cartel'

In May the suppliers lost a court bid to stop the commission from investigating the cartel. The Competition Commission said it has reasonable grounds to suspect collusion in the industry, Fin24 reported.

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