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Chile Determines That Broiler Cartel Was Illegal

10/01/2014
    

According to a USDA GAIN report dated January 13, 2012 (CI1201) the three major broiler integrators in Chile, Agrosuper, Ariztia and Don Pollo collectively supplied 92 percent of the domestic market. In December 2011 the National Economic Prosecutors Office formally charged the defendants with colluding to control price by limiting production. The Poultry Producers’ Association of Chile was also cited as a co-defendant.

Following raids on all four entities, National investigators were able to confirm that information on production was shared and that a de facto quota system existed. According to the Santiago USDA-FAS Post, there was considerable collusion between the government and poultry producers prior to 2012 leading to the resignation of several high-ranking officials.

In August, a unanimous decision of the Court For The Defense Of Free Competition ruled in favor of the November 2011 injunction obtained by the National Economic Prosecutor against the three producers and their association. Agrisuper and Ariztia were ordered to pay $25 million and $10 million in fines respectively with the possibility of a $25 million penalty to be imposed on Don Pollo.  The Poultry Producers’ Association has been disbanded and the companies concerned will have to undergo five-years of surveillance to ensure compliance with national laws relating to competition.