Two beef processing companies face charges of cartel conduct

The Competition Commission investigated beef processing companies, Irvin & Johnson (I&J) and Karan Beef for cartel conduct.

The two companies have been charged with dividing markets in the supply of processed beef products such as beef burger patties, steak sizzlers, crumbed beef steaklets, viennas, and boerewors.

Head of Cartel at the Competition Commission, Makgale Mohlala explained how the agreement between these two will negatively affect the market and consumers.

Read: Competition Commission denies allegations of corruption

Consumers will inevitably suffer because when I&J is the only player, which is no longer facing the competition from Karen Beef, it will have a choice of how they want to price their products because there is no one competing with them.

Makgale Mohlala, Head of cartel at the Competition Commission

Cartels by their very nature are designed to inflate prices so consumers will suffer because of lack of competition. They will have to pay higher prices because of this agreement.

Makgale Mohlala, Head of cartel at the Competition Commission

According to Mohlala, Karen Beef has admitted that they have contravened the Competition law and have since settled with the Commission. The settlement of R2.7 million was completed in August this year, says Mohlala.

He says I&J refused to settle and the matter has been referred to the Competition Tribunal where they will be prosecuted with the assistance of Karen Beef.

To hear the rest of the conversation with Makgale Mohlala, listen below:


This article first appeared on CapeTalk : Two beef processing companies face charges of cartel conduct


Recommended

by NEWSROOM AI
Read More
Six schoolboys took cocktail of steroids at Craven Week rugby tournament - Saids

Six schoolboys took cocktail of steroids at Craven Week rugby tournament - Saids

Saids CEO Khalid Galant says there seems to be a growing tolerance for doping behaviour in schoolboy rugby.

Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy

Game over, Tencent (i.e. Naspers)? No, it remains a profoundly good longterm buy

It’s not the beginning of the end of Tencent, says portfolio manager Francois Strydom, despite it losing R3.2 trillion in value.

Tax Ombud fights Sars for free on your behalf. It’s winning; 99.79% success rate

Tax Ombud fights Sars for free on your behalf. It’s winning; 99.79% success rate

Got a beef with Sars (tax refund, etc.)? Bruce Whitfield interviews Office of the Tax Ombud CEO Adv. Eric Mkhawane.

 Private healthcare facilities need to be regulated-Competition Commission

Private healthcare facilities need to be regulated-Competition Commission

Rosalind Lake says some of the findings by the Competition Commision state that private healthcare needs to be regulated.

Competition Commission denies allegations of corruption

Competition Commission denies allegations of corruption

Commissioner at Competition Commission, Tembinkosi Bonakele says the allegations leveled against them are utter rubbish.

 South Africans paying too much for private healthcare

South Africans paying too much for private healthcare

Pundits unpack the Healthcare Market Inquiry that was recently released.

This is not the first  plot to have Mahumapelo assassinated - NW Government

This is not the first plot to have Mahumapelo assassinated - NW Government

The Hawks have confirmed they are investigating an alleged plot to have Supra Mahumapelo assassinated.

Popular articles
Caster Semenya calls out IAAF for publicising expert witness list

Caster Semenya calls out IAAF for publicising expert witness list

Olympic champ Caster Semenya is challenging proposed IAAF rules that may force her to lower her testosterone levels.

'Parliament should have proper inquiry into Mkhwebane's fitness to hold office'

'Parliament should have proper inquiry into Mkhwebane's fitness to hold office'

DA's John Steenhuisen says Parliament should investigate the public protector after the findings against her.

I had nothing to do with VBS - Florence Radzilani

I had nothing to do with VBS - Florence Radzilani

Vhembe District former mayor Florence Radzilani says the Provincial Forensic Investigation exonerated her from the VBS scandal.

Pule Mabe was never alone in hotel room with assistant - ANC NEC's Sdumo Dlamini

Pule Mabe was never alone in hotel room with assistant - ANC NEC's Sdumo Dlamini

ANC's Sdumo Dlamini says party spokesperson Pule Mabe free to return to work after he being cleared of sexual harassment charges.

Black gay men can be misogynists, and here's what a few have to say about it

Black gay men can be misogynists, and here's what a few have to say about it

Presenter Eusebius McKaiser hosted a panel discussion with black gay men exploring entrenched patriarchy and the dynamics at play.

Why rooibos tea price remains high despite improved rains

Why rooibos tea price remains high despite improved rains

MD at Rooibos Ltd, Martin Bergh explains the current high price of Rooibos tea.

[WATCH] Owner catches car thief off guard and thwarts vehicle theft in Springs

[WATCH] Owner catches car thief off guard and thwarts vehicle theft in Springs

The vehicle's owner came out of the store just in time to scare away the man attempting to steal his bakkie.

Johannesburg’s drive to create a smart city is rolling out

Johannesburg’s drive to create a smart city is rolling out

Vumatel is deploying 15 000 CCTV security cameras over the next five years to make Joburg's streets safer.