Thirteen fresh-chicken distributors have been accused by the Competition Commission of Singapore (CCS) of price fixing.

A proposed infringement decision (PDS) has been issued by the commission against the distributors, who are alleged to have co-ordinated the timing and amount of price increases as well as agreeing not to compete.

Fresh-chicken distributors import live chickens from farms in Malaysia and slaughter them in Singapore. The distributors sell products such as whole fresh chickens, chicken part and processed chicken to customers such as restaurants, supermarkets, hotels, wet-market stalls and hawker stalls.

About 46 million such chickens were distributed in Singapore in 2014, with about S$500 million worth sold by the parties, which account for 90 per cent of fresh-chicken product supply in the state.   

After receiving a complaint, the CCS launched an investigation into the fresh-chicken distribution industry. It found that the 13 distributors had held discussions on prices from at least 2007 to 2014, and had also co-ordinated price increases.

Thee CCS says these acts aimed to distort the prices of fresh-chicken products in Singapore, restricting customer choice and providing few options for customers to change distributor, making the landscape less competitive.

Under the Competition Act, business entities should not enter into agreements or arrangements that prevent, restrict or distort competition.

The suspect parties have six weeks to make representations to the CCS. They are: Ban Hong Poultry; Gold Chic Poultry Supply; Hua Kun Food Industry; Hock Chuan Heng Farm and its sole proprietor, Hy-fresh Industries; Kee Song Brothers Poultry Industries; Lee Say Poultry Industrial and its sole-proprietor, Lee Say Group; Hup Heng Poultry Industries; KSB Distribution; Prestige Fortune; Ng Ai Muslim Poultry Industries; Sinmah Poultry Processing; Toh Thye San Farm; and Tong Huat Poultry Processing Factory.