South African beef processors in cartel investigation

By Aidan Fortune contact

- Last updated on GMT

Two South African beef processors are to be prosecuted for cartel conduct
Two South African beef processors are to be prosecuted for cartel conduct
Two South African beef processors are to be prosecuted for cartel conduct following an investigation by the Competition Commission.

Irvin & Johnson and Karan Beef have been charged with dividing markets in the supply of processed beef products such as beef burger patties, steak sizzlers, crumbed beef steaklett, viennas and boerewors.

The investigation was initiated by the Commissioner in September 2017, against the businesses for contravening section (4)(1)(b)(ii) of the Competition Act.

The investigation found that, from 2000 until recently, Karan Beef and Irvin & Johnson entered into a manufacturing agreement, under the terms of which Karan Beef would stop producing certain processed beef products for its own account and produce on behalf of Irvin & Johnson.

According to the Competition Commission, the agreement further entailed that Karan Beef should not sell certain of its processed beef products to certain customers, which were reserved for Irvin & Johnson. This conduct amounted to division of markets by allocating specific types of goods and customers, said the Commission.

Karan Beef has admitted guilt, settled with the Commission, and paid an administrative penalty of R2,700,000, while Irvin & Johnson is reportedly fighting the charges and the case is being referred to a Competition Tribunal. The Commission has asked the Tribunal to impose an administrative penalty of 10% of Irvin & Johnson’s annual turnover.

Located in Johannesburg, Karan Beef was established in 1974 and now manages 150,000 head of cattle. Irvin & Johnson was founded in 1910, focusing mainly on fish, but has since branched into the chicken and beef categories.

Related topics: Safety & Legislation, South Africa, Beef

Related news

Related products

The unique natural anti-oxidant for meat applications

The unique natural anti-oxidant for meat applications

Kancor Ingredients Limited | 28-Feb-2019 | Technical / White Paper

Fresh meat is preferred in bright red colour but is highly prone to oxidation and is colour sensitive to extracts. Kancor’s OxiKan R, a highly refined...

Microbiological safety of raw-fermented sausages

Microbiological safety of raw-fermented sausages

Jungbunzlauer | 18-Feb-2019 | Technical / White Paper

Raw-fermented sausages are prone to the contamination with pathogens such as Salmonella and Listeria. Jungbunzlauer gives a new impetus to the exploration...

From trust grows success

From trust grows success

K+G Wetter | 09-Oct-2017 | Data Sheet

The award winning company Wünsch’s Fleischspezialitäten sets new quality standards for meat products – using machines made by K+G Wetter.

Related suppliers