12 November 2019, Tuesday, 17:53 366

Antimonopoly Committee Uncovers Signs Of MHP Monopoly On Chicken Market

Editor: Tetiana Herasimova

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The Antimonopoly Committee of Ukraine has uncovered signs that Kyiv-based MHP (Mironivsky Hliboproduct), one of the largest producers of poultry meat in Ukraine, is a monopoly on the primary chicken market.

The Antimonopoly Committee announced this in a statement, the Ukrainian News Agency reports.

“The primary market of chicken meat is assessed as highly concentrated. The largest and most powerful market participant is the MHP group (Mironivsky Hliboproduct), which bears structural signs of a monopoly (dominant) position with 55% market share in 2016, 46% in 2017, and 45 % in 2018," the Antimonopoly Committee said in the statement.

According to the Antimonopoly Committee, increased market concentration and increase of MHP’s market share 47% due to an increase in chicken production at the second phase of the Vinnytsia poultry farm are expected in 2019.

As Ukrainian News Agency earlier reported, the Antimonopoly Committee of Ukraine announced in June that it had launched an investigation into the activities of five factories and the Mironivsky Hliboproduct Private Joint Stock Company (PJSC Mironivsky Hliboproduct), which are part of Mironivsky Hliboproduct on suspicion of abuse of monopoly on the poultry market.

According to the Antimonopoly Committee, the investigation established that PJSC Mironivsky Hliboproduct sets for its trading partners conditions that would enable it to secure sales markets, requires them to adhere to MHP’s pricing policy, and prohibits them from selling competitors' products.

The Antimonopoly Committee investigated the poultry market in 2017 and said that producers could be violating the law on protection of economic competition by colluding on pricing policies and that one of the producers could be abusing its monopoly position on the market.

The Antimonopoly Committee’s head Yurii Terentiev said at the time that the Mironivsky Hliboproduct company had a dominant position on the domestic chicken market, with a share of more than 40%, with its share exceeding 70% in some retail chains.