The Australian Competition and Consumer Commission (ACCC) has launched civil proceedings in the Federal Court against four major vegetable suppliers and three senior executives, alleging their involvement in a price-fixing cartel while supplying fresh produce to Aldi supermarkets.
The case concerns alleged anti-competitive conduct between 2018 and 2024 involving broccoli, cauliflower, iceberg lettuce, cucumber, Brussels sprouts, and zucchini sold to Aldi stores across New South Wales, Victoria, and Queensland.
Allegations of Cartel Conduct
According to the ACCC, the suppliers — Perfection Fresh Australia, Hydro Produce, Veli Velisha Fresh Produce and Velisha National Farms, and M. Fragapane & Sons — engaged in coordinated price-fixing arrangements.
The regulator alleges that on at least 28 occasions, two or more of the suppliers made or attempted to make arrangements with the purpose or effect of fixing, controlling, or maintaining prices. On a further 48 occasions, one or more of the suppliers then submitted prices to Aldi in accordance with these alleged arrangements.
The alleged cartel conduct predominantly related to “agile pricing”, Aldi’s system requiring suppliers to submit weekly quotes for certain products, including broccoli, cauliflower, and iceberg lettuce.
The ACCC further alleges the involvement of three executives:
Catherine Velisha, Chief Executive of Velisha National Farms, Kaushik Vora, Senior Sales Manager at Velisha National Farms, and Roberto Nave, General Sales Manager at M. Fragapane & Sons.
ACCC Statement
ACCC Chair Gina Cass-Gottlieb underscored the seriousness of the allegations, stressing that cartel conduct undermines competition and harms consumers:
“Businesses acting together instead of competing can drive up prices and harm consumers, while disadvantaging other businesses that are seeking to compete fairly. In this instance, we allege that price-fixing conduct involving some essential household vegetables took place across three states.”
She emphasized that protecting competition in fresh food supply chains is critical to ensure affordable prices for Australian households:
“Protecting competition in our fresh food supply chains is extremely important to drive price competition for the benefit of Australian consumers.”
Industry Response
Perfection Fresh, Australia’s second-largest vegetable supplier, confirmed it was cooperating with the regulator but declined to comment further while proceedings are ongoing, abc.net reported.
“Perfection Fresh has been working with the ACCC with a view to resolving these proceedings,” a company spokesperson said. “It would not be appropriate for Perfection Fresh to provide further comment on the matter while it is before the courts. Perfection Fresh remains committed to conducting its business with integrity, transparency, and in full compliance with all applicable laws and regulations.”
Meanwhile, Velisha National Farms rejected the allegations outright, stating:
“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.”
Possible Penalties
The ACCC is seeking declarations, civil penalties, compliance orders, and costs against the companies, as well as disqualification and non-indemnification orders against the individuals involved.
If found guilty of cartel conduct, the businesses could face fines of up to $50 million ($32.7 million USD) per breach, while individuals may face penalties of up to $2.5 million ($1.64 million USD) per contravention.
Background on the Suppliers
Perfection Fresh Australia is a New South Wales–based wholesaler and is the country’s second-largest vegetable supplier, distributing a wide range of produce nationwide. Hydro Produce is a New South Wales grower and wholesaler with farms across Australia. Veli Velisha Fresh Produce was a Victoria-based grower and supplier that ceased operations in 2019, when its business was acquired by Velisha National Farms, which continues to supply vegetables across multiple states. Finally, M. Fragapane & Sons, also known as Fragapane Farms, is a Victoria-based grower and supplier with nationwide distribution.
Next Steps
The case will proceed before the Federal Court, where penalties will be determined if the allegations are proven. The ACCC has reiterated its commitment to safeguarding competitive markets and urged anyone with information about cartel activity to contact its Cartel Immunity Hotline or submit information through its anonymous reporting portal.
