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:


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
[LISTEN] John Maytham gets a taste of life on board Cunard’s Queen Elizabeth

[LISTEN] John Maytham gets a taste of life on board Cunard’s Queen Elizabeth

John Maytham and his team hopped on board the luxury ocean liner, which has docked in Cape Town, during a special outdoor broadcast.

Looking for something new to do in CT? Why not consider cycling across the ocean

Looking for something new to do in CT? Why not consider cycling across the ocean

Cape Town Water Bikes is an unusual way to experience the coastline of the South Peninsula. Hop on a water bike and pedal away!

Bosasa's dirty laundry out in public and Sapo vows to cooperate

Bosasa's dirty laundry out in public and Sapo vows to cooperate

Allegations of massive corruption, tender fraud and blatant mismanagement have emerged at the state capture inquiry.

No more swiping without sweating! Discovery Vitality introduces new swipe system

No more swiping without sweating! Discovery Vitality introduces new swipe system

The health programme piloted a new tag system at the exit points in a bid to crack down on fake gym visits at a few fitness clubs.

Woman arrives in CT after driving from Scotland to SA in her old Morris Minor

Woman arrives in CT after driving from Scotland to SA in her old Morris Minor

The journey began in Aberdeen, her father's birthplace, in June last year and ended in Mother City over the weekend.

Here's how long South Africans spend watching porn (according to Pornhub stats)

Here's how long South Africans spend watching porn (according to Pornhub stats)

Clinical sexologist Dr Eve dissected some of the Pornhub 2018 stats and invited callers to share their troubles between the sheets.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.