Business
CCPC blames monopoly practice for high costs in poultry sector
The Competition and Consumer Protection Commission (CCPC)
Picture: Zambian Business Times
The Competition and Consumer Protection Commission (CCPC) has identified high market concentration and extensive vertical integration as key drivers of limited price competition and elevated costs in Zambia’s poultry sector.
This conclusion follows a comprehensive Commercial Poultry Market Inquiry conducted in 2025, in accordance with Part V of the Competition and Consumer Protection Act No. 24 of 2010 and Part III of the relevant regulations.
Responding to a press inquiry from the Zambian Business Times (ZBT), CCPC Senior Public Relations Officer Florence Zaza explained that the investigation was prompted by stakeholder complaints, prior studies, and the Commission’s ongoing regulatory oversight involving mergers, anti-competitive practices, and agreements within the poultry industry.
Zaza said the inquiry found that the industry is characterized by high vertical integration, with a few dominant firms controlling key stages including breeding, feed production, processing and distribution.
“This concentration limits price competition and restricts independent poultry producers’ access to critical inputs, while similar dominance and strategic practices in the animal feed market further suppress competition,” she said.
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Zaza added that the Commission further found that high barriers to entry, including significant capital requirements, limited access to breeding stock and distribution challenges, make it difficult for new and smaller players to compete effectively.
“The findings point to a market structure where strengthening competition could help address some of the pressures affecting poultry producers and consumers,” she said.
Meanwhile, the Commission has recommended reviewing licensing agreements to ensure fair access to breeding stock, strengthening regulatory oversight and disclosure requirements for vertically integrated firms, and tightening merger control and monitoring of integration trends.
CCPC has also recommended investigating territorial and supply restrictions affecting regional competition, arguing that addressing such practices could create a more competitive poultry market and potentially ease pressure on prices.
Article by Philip Sinkala
Source: Zambian Business Times — Read more
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