Charoen Pokphand Indonesia, which has been accused of colluding with 11 other companies to drive up the price of day old chicks by creating a shortage of supply, says the companies were in fact ordered by the government to cull chicks.
Charoen Pokphand found itself on a list by the Business Competition Supervisory Commission (KPPU), along with 11 other chicken breeders suspected of engaging in a cartel. The company denied those allegations on Monday, saying the order to cull had come from the Agriculture Ministry.
“We were invited to attend a meeting [at the Agriculture Ministry] from 7 p.m. to 11 p.m. on Sept. 14, 2015. Prior to the meeting, we did not know the meeting’s agenda,” Charoen’s director Jemmy Wijaya said at the KPPU office on Monday.
He added the decision had come purely from the government, without any lobbying from the companies. He said the government had decided to cull the chicken because of persistent oversupply at the time, driving down the price at the expense of small and medium-scale breeders, which had complained to the ministry.
At the meeting, the companies had been prohibited from leaving without signing the agreement, Jemmy said.
The other companies on the list are PT Japfa Comfeed Indonesia, PT Malindo Feedmil Indonesia, PT Satwa Borneo, PT Wonokoyo Jaya Corp, PT CJ-PIA (Cheil Jedang Superfreed), PT Taat Indah Bersinar, PT Cibadak Indah Sari Farm, CV Missouri, PT Ekspravet Nasuba, PT Reza Perkasa and PT Hybro Indonesia.