Dada controls chicken business

Mpho Mokwape | Thursday April 10, 2014 12:16

 

Answering a question from Shoshong MP, Philip Makgalemele, Makgato-Malesu said Dada’s Tswana Pride controls the local chicken industry.  “Tswana Pride is a broiler grower with an abattoir and distributes its products through its subsidiary company, Coldline.

Tswana Pride produces both the ordinary chicken meat (for general household consumption) and the processed (brined) chicken meat for fast-food franchise businesses,” said the minister. She explained that during shortages, Coldline normally applies for an import permit from the Ministry of Agriculture.

Makgalemele had wanted to know if the minister was aware that most fast food franchises in Botswana like Nandos, KFC, Wimpy, Hungry Lion, Barcelos and Chicken Licken do not source their chicken locally. The MP said when they get local supplies, they engage in anti-competition practices.

Makgato-Malesu concurred that most fast food franchises in the country do not get their chicken locally. She said the main reason is that dressed chicken for fast food outlets requires special production and heavy capital investment. Therefore the Small and Medium Enterprises (SME) in Botswana cannot supply the franchises because they do not have the wherewithal.

Makgato-Malesu told Parliament that she is not aware of any anti-competitive practices in the chicken business. She said anyone with grievances can report to the Competition Authority.

She said it is common for businesses, including franchises to specify standard conditions for supply of raw materials or products. She explained that fast food franchises often operate under strictly certified quality standards. She pointed out that this is not prohibited under the Competition Act. But the franchises would be violating the law if they have unreasonable, excessive or discriminatory terms of supply.

Makgato-Malesu said in such cases, complaints forwarded to the Competition Authority would be investigated on a case-by-case basis.