The Competition Authority of Kenya has announced its intention to launch a comprehensive Market Inquiry into the country’s Animal Feeds markets, citing the need to assess market interactions, structures, outcomes, and various factors affecting competition within the sector. This move is in accordance with the provisions of section 18 (5) of the Competition Act, 2010.
The primary objective of this market inquiry is to evaluate the dynamics of the Animal Feeds market in Kenya and make recommendations for interventions that will support sustainable growth and competitive markets within the industry. The animal feed sector plays a crucial role in the nation’s agricultural landscape, and ensuring its robustness and fairness is essential for the country’s agricultural development.
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Some of the specific objectives outlined by the Competition Authority of Kenya for this inquiry include:
(a) Price, Cost, and Quantity Assessment: The inquiry will scrutinize the pricing, costs, and quantities involved in the production and sale of various animal feed products at different stages of the value chain.
(b) Market Structure Analysis: An examination of market shares, concentration levels, ownership relationships, joint ventures, and marketing agreements related to animal feed and its inputs will be conducted.
(c) Supply Terms and Conditions: The inquiry will assess the terms and conditions of supply for feed producers of various sizes to determine if there are any discrepancies affecting competition.
(d) Barriers to Entry: An investigation into the barriers faced by smaller feed producers in entering and growing within the industry will be carried out.
(e) Information Exchange Practices: The availability of information, information sources, and any information exchange practices among companies, associations, and other groups related to animal feed and its inputs will be studied.
In addition to these objectives, the inquiry will also evaluate trade flows of feed constituents such as maize, soybeans, and derived products, taking into account existing trade agreements within the Common Market for Eastern and Southern Africa (COMESA) and East Africa Community (EAC) Regions.
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This Market Inquiry into the Animal Feeds industry is expected to provide valuable insights that will guide regulatory decisions aimed at promoting competition, fair pricing, and sustainable growth within the sector. The findings and recommendations from this inquiry are eagerly awaited by stakeholders who have a vested interest in the future of Kenya’s animal feeds market.
Members of the public and stakeholders in the animal feeds industry are encouraged to contribute to the inquiry. The Competition Authority of Kenya is inviting oral or written submissions from individuals with relevant information.
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