By:Nghiinomenwa-vali Erastus
An assessment will be carried out by the country’s competition watchdog to confirm if the Namib Mills and Namibia Poultry Industry(NPI) are truly refusing to supply Micro, Small, and Medium-sized Enterprises (MSMEs)with certain products, it was announced last week.
The Namibia Competition Commission reported it received information alleging that Namib Mills and NPI are limiting and restricting market access for new entrants.
The limitation is allegedly towards MSMEs. This is done by allegedly refusing to supply them with certain products referred to as “Tertiary Range Products”.
The tertiary range products include products such as soup packs, giblets, necks (bulk), hearts, gizzards, necks (pre-pack), heads &feet, cleaned feet, liver tubs, mala, livers (bulk) and breast bone.
According to the Commission, the restriction is not across the board as the reserved stock is being supplied to big and some clients only.
“The information proposes that these products are reserved for more established and preferred clients,” the Commission reported.
The country’s Competition Act, however, aims to safeguard and promote competition in the Namibian market, and empowers competition watchdog to ensure competition prevails.
Thus, the Competition Commission on 29 June 2022 resolved to initiate an investigation against Namib Mills and NPI in terms of Section 33 of the Namibian Competition Act, for alleged refusal to supply certain poultry products to some MSMEs.
In addition, The Commission was informed that Namib Mills and NPI are allegedly holding a dominant position in the relevant market.
This market is provisionally defined as the production and supply of poultry products including those categorised as tertiary range products.
As per its mandate, the Commission’s investigation aims to determine whether the conduct of refusal to supply certain poultry products to some MSMEs is one that contravenes the Act.
As part of its investigation, the Commission has resolved to conduct public consultations with all known MSMEs to complement its investigation.
The Commission plans to meet MSMEs through the scheduling of meetings in the coming days with the small participants in the sector to get their valued input into the investigation.
All interested parties such as consumers, poultry product importers/exporters, distributors, and retailers are also being called to approach the Commission on their own accord, as part of the consultation process. Email: erastus@thevillager.com.na
Poultry Big Players Allegedly Starving MSMEs With Certain Stock
