CTC condemns conditional selling of day-old-chicks

COMPETITION and Tariffs Commission (CTC) has condemned conditional selling of day-old chicks by different suppliers across the country saying the practice reduces benefits of free competition in the market.

This comes after CTC recently instructed three distributors of day-old chicks to stop imposing conditions for small-scale farmers who intend to procure chicks from them.

According to the regulator, there have been complaints that Nova Feed, Feedmix and Gain Cash and Carry were selling chicks only if one buys all the feed required to raise the birds.

CTC said in its investigation, it noted that this was a widespread marketing practice that inhibited competition.

In an interview, CTC assistant director Mr Isaac Tausha said conditional selling is not allowed at law and customers have the right to choose and that will enhance competition.

“Let’s give customers a right to choose where they want to buy so that we enhance competition.

“Why competition? Because once there is competition, there is going to be efficiency and companies will be put under pressure to reduce their cost of doing business and also bring in new products,” said Mr Tausha.

“At the end it is the economy that benefits, because we will have more players, better prices, better quality and at the end of it all the consumers will benefit.”

Mr Tausha said the practice of conditional selling was dominant during the upcoming festive preparation season where demand of day-old chicks is high.

“The practice was mainly noticeable during times of crisis, which include during disease outbreaks such Avian Influenza, and acute or pronounced shortages in the market when demand outweighs supply of day-old chicks,” he said.

In its latest newsletter CTC said conditional selling was exploitative in nature as it forces farmers to access chicks on condition that they buy stock feeds.

“This creates a strategic barrier to entry as potential feed distributors had to distribute day-old chicks for them to achieve the necessary sufficient scale to operate efficiently in the market,” said CTC.

The commission said submissions from smallholder farmers, chick breeders, industry representative bodies and the Veterinary Department have also confirmed existence of the practice. — @ SikhulekelaniM1