The ACCC’s allegations have ruffled some feathers in the egg industry, with producer Sunny Queen preparing to fight the consumer watchdog’s lawsuit.
Twelve of Australia’s top egg producers and suppliers ‒ including Torrumbarry newcomers McLean Farms ‒ are in a scramble after the ACCC launched legal action in the High Court alleging breaches of anti-competition laws.
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The nation’s peak consumer advocacy body alleges since late 2020 the companies coordinated on a range of business decisions, likely substantially reduced competition in sector.
The proceedings were brought against entities including Sunny Queen Pty Ltd (Sunny Queen), Doug Hall Poultry Pty Ltd (Hall), Alpair Pty Ltd trading as McLean Farms (McLean Farms), Ellerslie Free Range Farms Pty Ltd (Ellerslie) and Kinross Farm Pty Ltd (Kinross), with the ACCC accusing them of engaging in cartel conduct.
One of the defendants McLean Farms, recently purchased land in Torrumbarry as part of a proposed $560 million expansion with a facility housing more than two million birds.
The Queensland-based egg producer quickly came under local fire but in mid-September, Victoria’s Department of Transport and Planning granted the project three planning permits under the state’s fast-track Development Facilitation Pathway, allowing it to bypass Campaspe Shire.
One of the proposed sites of Mclean Farms’ new poultry facility on Arnold Rd, Torrumbarry.
Photo by
JORDAN TOWNROW
When asked about the ACCC’s allegations and if the court case could impact development of the Torrumbarry site, McLean Farms did not respond, with a legal representative for the company sharing a statement from a Sunny Queen spokesperson. The two companies are financially linked with Mclean Farms jointly owning Sunny Queen.
“Sunny Queen has been notified of the ACCC’s decision to commence civil proceedings against Sunny Queen and its shareholders (Alpair and DHP/DHPC) regarding alleged contraventions of certain competition law provisions of the Competition and Consumer Act 2010 (Cth),” the spokesperson said.
“Sunny Queen has cooperated fully with the ACCC throughout the course of its investigation. Sunny Queen denies the allegations and intends to defend the proceedings.”
The spokesperson confirmed the company, which is Australia’s top egg supplier, would continue with its usual operations throughout the court proceedings.
None of the other listed entities have made statements on the matter.
