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Private abattoirs face probe

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THE Competition and Tariff Commission (CTC) has begun an investigation into operations of private abattoirs amid allegations of unfair business practices by the companies, the commission has said.

THE Competition and Tariff Commission (CTC) has begun an investigation into operations of private abattoirs amid allegations of unfair business practices by the companies, the commission has said.

Business Reporter

The commission yesterday issued a notice inviting interested parties to submit written representation citing the alleged restrictive practices by some local private abattoirs that have allegedly gained control of the beef industry manipulating prices in the entire supply chain.

“It is hereby notified in terms of Section (2) of the Competition Act (Chapter 14:28), that the Competition and Tariff Commission is embarking on an investigation, in terms of section 28 of the Act, into allegations of restrictive practices by private abattoirs in the wholesaling and retailing of beef through opening their own retail outlets and selling beef directly to individuals at the same price that they charge to butcheries and other bulk buyers,” reads the notice in part.

Records show that Zimbabwe has one of the highest cattle population densities in the region — more than twice those in Zambia, South Africa and Botswana.

The beef cattle industry, according to experts, has high potential to directly and indirectly contribute to the economic development of the country. The country has a long history of producing top quality beef meeting very stringent market requirements of lucrative local and external markets.

Experts say the past decade has seen a major shift in the meat protein industry from a predominantly beef producing and consuming nation to poultry production and consumption following the reduction of the national herd. This has seen the country largely relying on meat imports.

Challenges facing beef industry

CHALLENGES confronting the industry from a competition and trade policy point of view, according to the CTC, included the abuse of dominant positions, or monopolisation, engaging in anti-competitive practices of both exploitative and exclusionary nature, such as excessive pricing, predatory pricing and discriminatory treatment.