"The Australian Competition and Consumer Commission has found no evidence that Pauls Limited (a subsidiary of the Parmalat Group) and Australian Cooperative Foods Limited, trading as Dairy Farmers, colluded in implementing milk price rises in April this year in Queensland", ACCC Chairman, Professor Allan Fels, said today.
On 1 April 1999, Pauls announced that it would raise its wholesale and recommended retail prices of milk. By way of example, the recommended retail price of 1 litre of whole milk was raised 6 cents. Dairy Farmers announced an identical price rise shortly thereafter. The price rise received significant media attention, and the ACCC was called upon to investigate.
"The fact that identical price increases were announced at almost the same time was cause for concern about potential price fixing", Professor Fels said.
"However, the ACCC's investigations revealed no evidence of any agreement or arrangement between the companies about pricing. In any market consisting of only two major players, where the parties would each be well aware of the commercial realities facing the other, consistent pricing behaviour is not surprising".
On 1 April 1999, Pauls announced that it would raise its wholesale and recommended retail prices of milk. By way of example, the recommended retail price of 1 litre of whole milk was raised 6 cents. Dairy Farmers announced an identical price rise shortly thereafter. The price rise received significant media attention, and the ACCC was called upon to investigate.
"The fact that identical price increases were announced at almost the same time was cause for concern about potential price fixing", Professor Fels said.
"However, the ACCC's investigations revealed no evidence of any agreement or arrangement between the companies about pricing. In any market consisting of only two major players, where the parties would each be well aware of the commercial realities facing the other, consistent pricing behaviour is not surprising".