An alleged vegetable cartel has been exposed, accused of fixing prices in a discount supermarket, which one expert says could lead to greater transparency and lower prices.
Four fresh vegetable suppliers to supermarket chain Aldi have been accused of fixing prices for produce on Australia’s east coast.
The competition watchdog alleged the suppliers, and three executives, rigged prices on produce including broccoli, cauliflower, iceberg lettuce, cucumber, brussels sprouts and zucchini.
Arrangements to rig or try to rig prices occurred more than two dozen times, the Australian Competition and Consumer Commission alleged.
The regulator asserts the illegality took place in NSW, Victoria and Queensland between 2018 and 2024.
The Federal Court action follows the ACCC’s announcement it is prioritising consumer and fair trading concerns in the supermarket sector, with a focus on misleading pricing practices, for the 2025-26 financial year.
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly,” ACCC chair Gina Cass-Gottlieb said.
“In this instance, we allege that price-fixing conduct involving some essential household vegetables took place across three states.
“Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.”
One of the suppliers, Perfection Fresh Australia, said the case involved “a small number of fresh produce that was supplied to one customer”.
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“Perfection Fresh has been working with the ACCC with a view to resolving these proceedings,” it said in a statement.
Another supplier, Velisha Farms, said “the allegations being made by the ACCC are very serious and we do not accept them”.
“We have retained lawyers and intend on defending these proceedings,” it said in a statement.
The other companies accused of being in the cartel – Hydro Produce (Aust) and M. Fragapane & Sons – did not immediately respond to a request for comment.
Griffith University competition and retail expert Graeme Hughes said the civil action was significant as it “signals the ACCC’s ongoing focus on competition within the supermarket sector”.
He said if the regulator was successful, the suppliers faced potential fines of $50 million or 30 per cent of revenue over the period of breach. Individuals faced penalties of up to $2.5 million.
“If proven, the immediate effect on individual grocery bills may not be immediately obvious – however it could lead to greater market transparency,” the academic said.
Over the long-term, more transparency could lead to “more competitive pricing for fresh produce”, he said.
The federal government, concerned about higher supermarket prices adding to pressures on household budgets, has boosted the ACCC’s funding by more than $30 million to go after supermarkets using misleading pricing tactics.
A major ACCC inquiry into supermarkets in March called for greater transparency about supermarkets’ wholesale fresh produce prices after finding suppliers bore a disproportionate amount of risk in supply fluctuations.
