ACCC allows collective bargaining for potato growers but continues to oppose seed price recommendations

The Australian Competition and Consumer Commission today authorised the South East Potato Growers Association and the Victorian Potato Growers Council and their members to collectively bargain with potato buyers.

SEPGA represents 17 potato growers located in the south-east of South Australia and VPGC represents around 290 potato growers in Victoria.

“The ACCC considers that collective bargaining by potato growers is likely to allow them to have greater input into the terms and conditions of their contracts with potato processors, potentially leading to more efficient outcomes,” ACCC Deputy Chair Michael Schaper said.

“The growers also applied for authorisation to set a price recommendation for seed potatoes. However, the ACCC considers the process for setting a seed price recommendation is likely to result in higher prices for seed potatoes,” Dr Schaper said.

The ACCC has decided to authorise the collective bargaining conduct that potato growers can engage in but not to grant authorisation to potato growers to set a recommended price for seed potatoes.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.