14 July 1999
Court action against feed company

By FWi staff

A SECRET price fixing agreement which substantially increased the price of animal feed has been referred to the Restrictive Practices Court.

The agreement was designed to ensure that customers in the UK could not be charged lower than an agreed price for animal feed additive lysine.

Archer Daniels Midland Ingredients Limited of Erith, Kent, was involved in the Europe-wide agreement with four other companies, it is claimed.

Action is being taken by the Office of Fair Trading against Archer Daniels and the Cheal Jedang Corporation, a South Korean Company with an office in London.

The other three parties involved will not face proceedings in this country because they do not operate in the UK.

This is the first case of UK action being taken against members of an international cartel, said John Bridgeman, the Director General of Fair Trading.

The parties agreed to fix the price of an additive widely used by poultry and pork producers and that is likely to have had an impact on retail meat prices.

The other parties to the European agreement were Eurolysine SA, Kyowa Hakko Europe GmbH and Sewon Europe GmbH.