ACCC investigates alleged price-fixing by vegetable suppliers to ALDI
The ACCC has launched Federal Court proceedings over alleged price-fixing of common vegetables, naming a Queensland-based business among four ALDI suppliers.
The Australian Competition and Consumer Commission has launched Federal Court proceedings over alleged price-fixing of common vegetables supplied to ALDI stores, naming four companies including one operating in Queensland.
Perfection Fresh Australia, which has a presence in Queensland but is based and headquartered out of Sydney, is among four companies named in the action, alongside Hydro Produce (Aust), Velisha National Farms and Fragapane Farms.
The proceedings allege the four suppliers co-ordinated prices for broccoli, cauliflower, iceberg lettuce, cucumber, brussels sprouts and zucchini across Queensland, New South Wales, and Victoria between 2018 and 2024.
Three senior executives from the three southern companies, Catherine Velisha, Kaushik Vora and Roberto Nave, are also facing action.
ACCC chair Gina Cass-Gottlieb said the conduct, if proven, represents a serious breach of Australia’s cartel laws.
“Cartel conduct, whether by co-ordinating prices or agreeing on terms of bids with competitors, is anti-competitive, and is illegal,” she said.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly.”
The ACCC alleges that on 28 occasions, two or more suppliers made arrangements to fix, control or maintain the prices of key vegetables, and on 48 occasions, they submitted prices to ALDI in accordance with these arrangements.
The case largely centres on ALDI’s “agile pricing” system, where suppliers submit weekly quotes for products including broccoli, cauliflower and iceberg lettuce.
The ACCC claims the arrangements undermined this competitive process.
The watchdog is seeking civil penalties, compliance orders, and costs against the businesses, as well as penalties, disqualification orders and costs against the individual executives.
Perfection Fresh and Hydro Produce operate nationally, supplying vegetables into Queensland. Velisha National Farms and Fragapane Farms are based in Victoria but also supply produce to Queensland stores.
Ms Cass-Gottlieb stressed the importance of protecting competition in food supply chains. “Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers,” she said.
If proven, penalties could reach up to $50 million per breach for businesses and $2.5 million for individuals.
In a statement, Perfection Fresh Australia confirmed that civil proceedings “alleging anti-competitive conduct in relation to a small number of fresh produce that was supplied to one customer” had been commenced against it and others.
“Perfection Fresh has been working with the ACCC with a view to resolving these proceedings,” the statement said.
“It would not be appropriate for Perfection Fresh to provide further comment on the matter while it is before the courts.
“Perfection Fresh remains committed to conducting its business with integrity, transparency, and in full compliance with all applicable laws and regulations.”
The other three companies were contacted for comment.
AUSVEG CEO Michael Coote said: “AUSVEG is aware that the ACCC has commenced proceedings against a small number of growers and is working to understand the nature of this court action, and we do not condone any illegal activities.
“More generally, it is important to understand Australia’s thousands of commercial vegetable growers operate in a complex and large-scale national supply chain where they are overwhelmingly price takers, not price makers.”
The ACCC continues to encourage anyone with knowledge of cartel conduct to contact its Cartel Immunity Hotline or use the anonymous reporting portal.
