By PHILIPPA STEVENSON
The Commerce Commission is investigating allegations of anti-competitive behaviour against the two main milk suppliers, Mainland and New Zealand Dairy Foods.
Newcomer Tussock Milk said yesterday that it had complained to the commission alleging the big companies were cutting prices to retailers.
A spokesman for the Gisborne-based dairy company, Garry
Belsham, said he was confident the commission would find evidence of backhanders to shopowners to keep them stocking the big companies' Tararua and Anchor brand milk.
Milk prices stayed the same to the buying public but retailers were benefiting, he said.
Belsham also alleged that distributors who had swapped to Tussock milk were being discriminated against by the two companies.
Dairy Foods chief executive Peter McClure said he was unaware of the investigation but welcomed Belsham "to the world of competition".
"He's been very vocal in the media about what he's going to do but we are obviously going to be competitive," he said.
McClure said Dairy Foods understood its legal obligations and he was very confident it would not be found to have breached the law.
Tussock Milk, founded by Karaka farmer Julian West and Rotorua investor Keith Simmons, entered the milk market in Auckland in January with the aim of suppling throughout the North Island. Belsham said it was distributing 11,000 litres a day.
