ACCC grants interim authorisation to TFGA to collectively negotiate growing contracts

The Australian Competition and Consumer Commission has granted interim authorisation to the Tasmanian Farmers & Graziers Association for an arrangement between present and future vegetable grower members to collectively negotiate the terms and conditions of growing contracts with McCain Foods (Aust) Pty Ltd and Simplot Australia Pty Ltd.

"Granting interim authorisation will maintain the status quo and allow the TFGA to continue to engage in collective negotiations with McCain and Simplot while the substantive application for authorisation is being considered," ACCC chairman Graeme Samuel said today.

Authorisation provides protection 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 authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted by the ACCC.