Five Parent Companies of Poultry Farms Suspected of Forming a Cartel

Agroindustry

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10/08/2016 20:01 WIB

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Five parent companies are allegedly engaging in cartel activity.

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Charoen Pokphand Jaya Farm is the largest broiler breeder producer, controlling up to 50 percent of the stock. Charoen, Japfa Comfeed Indonesia, Malindo (Bibit Indonesia), CJ-PIA (Cheil Jedang Superfeed), and Wonokoyo Jaya Corp control 85 percent of the 35 million broiler breeder population.

These five companies are part of 12 broiler breeder producers suspected of being involved in a national chicken cartel. They are allegedly colluding to keep chicken prices high by agreeing on early culling or the destruction of breeders, causing a sudden disappearance of chicken stock.

The Business Competition Supervisory Commission (KPPU) is investigating these alleged irregularities. The government has appointed the state-owned company PT Berdikari (Persero) to address the dominance of this chicken cartel practice.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."