On 1st December, 2021, CFTC commenced investigations against Kelfoods on alleged anticompetitive conduct. The investigation was instituted following findings of a market study into the poultry sector in Malawi.
Specifically, the market study established that the supply of day-old chicks to small poultry producers is tied to the purchase of feed from Kelfoods. Further, according to the information in the report, the small poultry producers alleged that Kelfoods refuses to supply them day-old chicks especially during the months leading to the festive season.
In view of the information, the Commission perceived that the alleged conduct by Kelfoods was restricting competition in the supply of day-old chicks and was unfair to consumers.
However, CFTC’s analysis of the findings of the investigation revealed that Kelfoods did not prevent competition through tying and bundling by making the supply of day-old chicks to small poultry producers dependent on the purchase of feed from their company.
Having found no evidence against the allegations levelled against the Respondent in this matter, the Commission resolved to close the matter against the Respondent.