PGW and Elders’ employees fined in price fixing case

Issued 5 December 2016
Release No. 61

PGW and Elders’ employees fined in livestock price fixing case

Four current or former employees of PGG Wrightson and one former employee of Elders Rural Holdings Limited have been ordered to pay penalties totalling $105,000 following an Auckland High Court penalty hearing for their respective roles in a price fixing agreement in connection with the introduction of the National Animal Identification and Tracing Act 2012 (NAIT Act).

All five men admitted that they were involved in an anti-competitive agreement between their employers PGG Wrightson and Elders and other members of the New Zealand Stock and Station Agents Association to charge a minimum fee of $25 for the tagging of any cattle, and $10 for any calves, presented to a saleyard without the ear tag required by the NAIT Act. It was agreed that agents would pass that fee on to farmers (Tagging Fee Agreement).

Four of the men, Nigel Thorpe, Donald Baines, Douglas Cartridge, and Andrew Clark, were members of PGG Wrightson’s NAIT Project Team. The fifth individual, Stuart Chapman, was Elders’ managing director at the time.

All five men have admitted their conduct breached the Commerce Act and reached settlement agreements with the Commission. In addition to their respective penalties, they have each agreed to pay $5000 towards the Commission’s investigation costs.

In December 2015, PGG Wrightson and Rural Livestock were fined $2.7 million and $475,000 respectively after admitting their conduct in this case. Proceedings against the final defendant, Elders Rural Holdings Limited, remain before the Court.

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