ACCC alleges price fixing by major milk companies

The Australian Competition and Consumer Commission has instituted legal proceedings against Pauls Limited, Malanda Dairyfoods Ltd and Australian Cooperative Foods Ltd alleging long-standing price fixing conduct in relation to Pauls and Malanda milk products in the Northern Territory.

It is alleged that the agreement had the purpose and likely effect of controlling or maintaining the price for:

• Pauls and Malanda milk products at the wholesale level in the Northern Territory

• unprocessed milk in the Northern Territory

It is further alleged that, in the course of negotiations which led to the agreement, Pauls, Malanda and ACF made an arrangement whereby ACF and Malanda would supply to Pauls all the unprocessed milk for the production of Pauls, Malanda and ACF milk products at an agreed price, and Pauls would process and package it.

Individuals alleged to be knowingly concerned in the conduct were Mr Barry Jardine the Corporate Secretary of Pauls, Mr Alan McCray the former General Manager International of Pauls, Mr Sydney Morgan the General Manager, Planning and Development of ACF and Mr Richard See the former Chief Executive Officer of Malanda.

The ACCC is seeking orders against Pauls, Malanda, ACF and the senior executives including declarations, injunctions, compliance programs, penalties and costs. A directions hearing has been set down for 9 a.m. Tuesday 18 September at the Federal Court in Darwin.