Uruguay: Collusion allegations in poultry industry revived

Spokesmen for Uruguay’s Union of Meat Vendors (UVC) expressed their disagreement with a recent ruling by the country’s Ministry for Cattle, Agriculture and Fisheries, which decided not to authorise the import of Brazilian chicken breasts and supremes. The spokesmen considered that “There are no formal blocks or a sanitation issues” to justify the restriction in imports, which the union hopes would help reduce the price for this foodstuff.

80% of Uruguay’s poultry industry is controlled by only three companies, which have faced allegations of coordinating prices and causing high variations in the price of chicken meat. All previous cases have been rejected by Uruguay’s competition authority, however.

Responding to the UVC’s accusations, the Secretary of Uruguay’s Poultry Processors Union pointed out that the proposed imports would have a minimal impact in the market, which amounts to over 85,000 tons of chicken each year, before adding that the greater concern for the industry is the rise in cross-border smuggling.

Full content: WattagNet

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