Supreme Flour

R4.35 million Tribunal Settlement for Godrich Flour Mills

According to the Competition Tribunal, Godrich Flour Mills has agreed to pay R4.35-million for participating in a cartel that colluded with other maize milling firms to fix the price of milled white maize, as well as the dates on which the pricing would be implemented. 

Godrich did not implement the cartel decisions but admitted to taking part in practices to directly or indirectly fix a purchase or selling price. It also made an admission not made by other parties who had settled with the competition authorities, namely that it participated in dividing markets. 

In March 2007, the Competition Commission initiated a complaint against Tiger Brands, Pioneer Foods, Foodcorp, Pride Milling and Progress Milling for alleged price fixing. The initiation was later amended to include other players in the milling industry including Blinkwater Mills and Godrich.

The case is still ongoing with regard to Pioneer Foods, Foodcorp, Progress Mills, Westra Milling, TWK Milling, NTK Milling, Isiswe Mills and Paramount Mills.  

The investigation was extended after the commission received a corporate leniency application from Premier Foods in 2007, which was corroborated by a further leniency application filed by Tiger Brands in the same year. 

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