Foodcorp fined R88.5-million for price-fixing
Foodcorp has been fined R88.5-million for price fixing and creating a cartel, according to the Competition Commission.
"The Competition Commission has reached a settlement with Foodcorp of two separate cartel cases in which it admits to colluding in the pricing of wheat flour and maize meal," on Thursday.
The fine amounted to 10% of the turnover of its milling division in 2010, spokesperson Trudi Makhaya said in a statement.
Foodcorp admitted that between 1999 and 2007 it was represented in a series of meetings between it and its competitors, at which agreements were reached to fix selling prices of both milled white maize, as well as milled wheat products.
In these meetings, dates for the implementation of these price increases were decided.
As part of the settlement agreement, Foodcorp committed to cooperate with the commission in the prosecution of other cartel members by testifying before the Competition Tribunal.
Tiger Brands and Premier Foods applied for leniency.
In November 2010, Pioneer Foods was fined R500-million for price fixing in maize milling, wheat milling, baking, poultry and eggs.
Half the fine was an administration penalty, while the remainder was used to create an agro-processing fund, administered by the Industrial Development Corporation. – Sapa.