Posts tagged "Commerce Commission"

PGG-Wrightson takes profit hit

[28 February/Otago Daily Times] PGG-Wrightson (PGW) has reported a decrease in profit after its soon-to-be-sold Seed and Grain division delivered an $8.6 million loss, resulting in first half profits$320,000. The sale of the division should give PGW a $210 million cash surplus for the company. Ian Glasson, PGW Chief Executive expects EBITDA for the full...

Open Country challenges validity of Fonterra’s milk price

[18 February /NZ Herald] Open Country Dairy is questioning the way that Fonterra’s milk price was set in the 2018 season. This is despite the Commerce Commission accepting the price-setting process which must meet both efficiency and contestability elements required by law. Open Country Dairy is of the view that Fonterra’s asset beta was too...

Seed business sale approved by commissions

[15 February/Rural Life] Approval by the Commerce Commission has been given to Denmark-based DLF seeds to purchase PGG Wrightson’s seed and grain business. This was due to the commission being satisfied that the acquisition would not be likely to substantially lessen competition in any of its markets. The Australian Competition and Consumer commission also gave...

Commerce Commission nudges Fonterra towards greater transparency

[14 December/The Country] The Commerce Commission’s final report on the latest season’s milk price manual gave Fonterra Cooperative Group a ‘pass’ mark, saying there were no major concerns over the latest amendments, however the Commission noted that it is looking for more transparency from the dairy processor. The Commission said it will take a closer...

Shareholders Association voting against PGG Wrightson’s $421 million deal

[23 October/NZ Herald] The New Zealand Shareholders’ Association has said that it will vote against the deal to sell PGG Wrightson’s seed division to DLF Seeds, a Danish co-operative.  While the lobby group recognises that the offer is attractive at face value, particularly given the $292 million capital return it will trigger, it notes the...

Fonterra’s milk price calculations higher than competition – Commission

[14 June/NZ Herald] The Commerce Commission said Fonterra’s estimated risk in calculating the cost of financing milk processing operations was too low, which resulted in it calculating a higher milk price than its competitors. The cost of financing feeds into the calculation of the milk price Fonterra paid its customers. Commerce Commission Deputy Chair, Sue...

Swaps case comes at uncomfortable time for Kiwi banks

[21 May/NZ Herald] Controversy over how New Zealand lenders sold a complicated financial product to farms have resurfaced during a bad time for the reputation of the Australasian banking sector. It was revealed that former Dargaville farmer, Renie Gibson, is suing Westpac after she lost her farm during the financial crisis. The action remains live. ...

Poultry suppliers quash claim of added water

[15August/Business Day] Poultry Industry Association of New Zealand Executive Director, Michael Brooks, is adamant that poultry suppliers are not pumping raw chicken with water to make it heavier following a complaint to the Commerce Commission by a home cook about the amount of water which came from his Countdown bought chicken. Mr Brookes said if...

More transparency sought on Fonterra sales

[15 August/Otago Daily Times] The Commerce Commission has issued its draft report on Fonterra’s 2017 farmgate milk price and while saying the price of $6.15 per kilo of milksolids has met the milk price monitoring regime they have called for the co-operative to be more forthcoming in the information it provides about sales outside of...

Godfrey Hirst loses bid to halt Cavalier’s domination of NZ wool scouring

 [30 November/ NZ Herald] The Court of Appeal has dismissed Godfrey Hirst’s appeal against earlier decisions by the Commerce Commission and the High Court to allow the merger of the wool scouring operations of New Zealand Wool Services International and Cavalier Wool Holdings. The Commerce Commission had allowed the merger that would create a monopoly...

ComCom releases milk price report

 [15 August/ Dairy News] The Commerce Commission has released its draft report on Fonterra’s base milk price calculation for the 2015/2016 dairy season in which the payout was $4.90 per kilogram of milk solids. The Commission was required to review Fonterra’s calculation each year at the end of the dairy season under the milk price...

No dairy deregulation needed, says Commission

[5 November/ Radio NZ Rural] Having been requested by the Minister for Primary Industries to review the regulatory structure surrounding the dairy industry, the Commerce Commission has released its draft findings which note that there remains insufficient competition in the dairy industry to warrant deregulation but does recommend some changes are made to the regulations. ...

Commerce Commission gives Fonterra’s milk price a tick of approval

[17 August/ Business Day: NZ Farmer] The Commerce Commission has approved Fonterra’s calculation of its base milk price for the 2014/15 season. Commerce Commission Deputy Chairwoman, Sue Begg said the calculation was largely consistent with both the efficiency and contestability purposes of the Dairy Industry Restructuring Act. The commission also praised the co-operative for the...

Independent South Island milk processors cross competition threshold, Guy says

[13 August/ National Business Review] Primary Industries Minister, Nathan Guy said independent processors collected 22 percent and 9 percent of all milk solids in the South and North Island’s respectively, triggering the expiry of pro-competition provisions under the Dairy Industry Restructuring Act (DIRA) in the South Island. Mr Guy said he was encouraged by new...

Wool scouring monopoly hearing delayed

[6 August/ Radio NZ Rural] The Commerce Commission has delayed a hearing of final submissions for the merger between Cavalier Wool Holdings and New Zealand Wool Services. The commission said it had received new information on property valuations relating to the takeover, and now needed more time to check the information.

Rural service firms accused of price fixing

[3 August/ Radio NZ Rural] The Commerce Commission has filed legal action against PGG Wrightson, Elders New Zealand and five individuals after claims of price fixing in connection with the introduction of the National Animal Identification Tracing Act. The commission claims agreements were made to fix the price of tagging un-tagged cattle at saleyards, increase...

ComCom to file court proceedings against Wrightson, Elders, Rural Livestock over price fixing

[7 July/ NZ Herald] The Commerce Commission is to file court proceedings against PGG Wrightson, Elders New Zealand and Rural Livestock by August. The commission claimed the three companies fixed fees charged during the adoption of the National Animal Identification and Trading Act 2012. If convicted, the companies could be hit by a maximum penalty...

Comcom investigates PGG Wrightson over NAIT scheme fees

[6 July/ NZ Herald] The Commerce Commission is to investigate PGG Wrightson over the fees the firm charged during the implementation of the National Animal Identification and Trading Act programme, which required nationwide tagging of cattle and deer in a bid bolster New Zealand’s response to biosecurity threats. The commission believed the company breached the...

Commerce Commission delays final wool scouring decision [29 June/ National Business Review]

The Commerce Commission has delayed its final decision on the proposed merger of Cavalier Wool Holdings and New Zealand Wool Services International until 28 August. The Commerce Commission explained that the delay was due to parties continuing to provide new information and submissions. Godfrey Hurst General Manager, Tania Pauling said that she is unhappy with...