ACCC approves collective sale of wine grapes by King and Alpine Valley growers
The Australian Competition and Consumer Commission has granted authorisation* to 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.
"Since interim authorisation was granted the ACCC notes that the short term response from wine grape buyers has been positive and that the collective bargaining arrangement is likely to introduce new buyers to the region," ACCC Chairman, Mr Graeme Samuel, said today.
"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.
"The ACCC considers that the possible anti-competitive effect of the collective bargaining arrangement is limited given its voluntary nature, the limited section of the industry covered by the arrangement and competition from wine grape growers outside of the group.
"Importantly, wine grape growers will not be restricted to selling their grapes through NEV. The arrangements do not reduce the ability of growers to negotiate individual agreements with buyers outside of the collective arrangement.
"The ACCC has issued this final decision in just under three months since receiving this application for authorisation. This again demonstrates the ACCC's commitment to dealing with collective bargaining matters quickly," Mr Samuel said.
A copy of the final decision will be available on the ACCC's website.
*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.
