20th September 2021 By Staff Reporter | firstname.lastname@example.org | @foodtickernz
The Commerce Commission has received an application from the New Zealand Tegel Growers Association seeking authorisation on behalf of its members to collectively negotiate the terms and conditions of its members’ supply of chicken growing services to Tegel Foods.
The industry association, which represented approximately 75 growers to Tegel, was seeking authorisation for a period of ten years.
TGA considered that any lessening of competition as a result of its members collectively negotiating with Tegel would be outweighed by the public benefits that were likely to arise.
According to TGA, these benefits included a likely reduction in the costs of negotiating the terms and conditions of supply and various efficiency benefits.
In 2017, the commission granted authorisation to the Waikato – Bay of Plenty Chicken Growers Association Incorporated to collectively negotiate the terms and conditions of its members’ supply of chicken growing services to Inghams Enterprises.