ACCC proposes to approve collective sale of wine grapes by King and Alpine Valley growers
The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* 39 wine grape growers in the Alpine Valleys and King Valley region of north east Victoria, to appoint a common agent, North East Valleys Wine Group, to negotiate wine grape supply contracts.
The ACCC recently granted interim authorisation to allow NEV to negotiate wine grape supply contracts on behalf of the growers in respect of the current 2007/2008 wine grape harvest.
"The ACCC considers that negotiating the sale of wine grapes through a common agent will provide growers with greater input into contract terms and conditions and reduce transactions costs for growers and wine grape buyers," ACCC Chairman, Mr Graeme Samuel, said today.
"Importantly, the arrangements allowing the wine grape growers to collectively sell wine grapes do not reduce the ability of growers to negotiate individual agreements with buyers outside of the collective arrangement."
The ACCC is seeking submissions from interested parties in relation to its draft determination. Copies of the draft determination will be available on the ACCC's website. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131, Canberra ACT 2601. Submissions can also be lodged by email to adjudication@accc.gov.au.
* Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.
