KUALA LUMPUR: The five companies fined for forming a "chicken feed cartel" should not be allowed to continue operating the business, said Consumers' Association of Penang (CAP).
CAP education officer N.V. Subbarow said it showed the gravity of the situation, with consumers and retailers suffering due to the rising costs; as well as troubling the government.
"Even their family members shouldn't be given any licence (to produce feed).
"This cartel trade is becoming more rampant in Malaysia and a lot of companies are involved by controlling the prices," he said when contacted.
In commending the Malaysia Competition Commission (MyCC) for solving the long-standing issue, Subbarow suggested the establishment of a commission to deal with problems related to animal feed faced by producers and retailers.
He said the commission should also decide on prices of animal feed commodities.
"This will stop the setting up of the cartel.
"Other basic foods such as meat, chicken, beef, eggs and imported items can be discussed in this commission."
Chicken producers have previously complained about the rising operating costs, mainly due to the costly feed and worker shortage.
Animal feed is regulated under the Feed Act 2009, which among others control the importation, manufacture, sale and use of feed to ensure that it satisfies nutritional requirements of animals and safe for human consumption.
MyCC's chief executive officer Iskandar Ismail suggested the drawing up of a national feed policy to curb manipulation by industry players.
Five chicken feed millers were fined a total of RM415.5 million after they were found guilty of forming a "chicken feed cartel" to fix prices by controlling up to 40 per cent market share of the commodity in the country.
The companies, which are among the 29 entities identified, were estimated to control up to 40 per cent market share of the commodity in the country.
They were found to have violated Section 4(1) of the Competition Act 2010 (Act 712) for establishing an agreement between them with the goal or effect of "preventing, restricting or distorting competition" in any market for goods or services.