South Africa’s Competition Tribunal has set a date for the hearing in the cartel case against eight major dairy producers accused of price-fixing and freezing smaller milk processors and distributors out of the market.
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The tribunal, which just-food reported on in January, is set to commence in September and will involve Clover Industries, Clover SA, Nestle, Parmalat, Ladismith Cheese, Woodlands Dairy, Lancewood and Milkwood Dairy,
Shan Ramburuth, commissioner at the Competition Commission, said: “Because collusion between competing businesses is one of the most egregious of anti-competitive practices, the matter must be taken very seriously.
“Collusion perverts the normal and healthy functioning of a competitive market by creating an artificial environment for the setting of prices to rip-off consumers, in this case in respect of a basic foodstuff – milk.”
The fine is expected to be severe enough for parties involved in cartel activity to “desist” and is essentially seen as a whistle-blowing programme allowing the “first through the door” to be considered for exclusion from prosecution.
In January, deputy chief executive for Clover, Manie Roode, said of the price-fixing allegations: “You will find there is a huge price difference in our products, with Clover products more expensive in some cases.”
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By GlobalDataPick ‘n Pay CEO Nick Badminton also has denied allegations of his company’s involvement in price-fixing and pledged to continue the fight against collusion.
