Meat firms face Commerce Commission probe

By PHILIPPA STEVENSON

The Commerce Commission is investigating alleged anti-competitive moves by a consortium of North Island meat companies.

A complaint was made to the commission last month about an apparent attempt by the consortium to buy and close Coromandel Meats, a major employer in Thames.

The Business Herald understands the consortium members were meat companies Richmond, Affco and Wilson Hellaby.

Wallace Corporation bought Coromandel Meats last year and at the time managing director James Wallace said his competition for the plant was the consortium, which planned to close it to reduce competition.

A commission spokeswoman, Jackie Maitland, said yesterday prosecution would depend on the availability of evidence showing that a company intended to make anti-competitive arrangements, regardless of whether it had carried them out. The maximum penalty for a company was $10 million.