Wrightson will pay a penalty of $2.7 million and review its NAIT-related fees, in an agreement with the commission.
The agreement avoids protracted and costly litigation, the company told NZX today.
The issues relate to the charging of fees at saleyards for services to comply with the new National Animal Identification and Tracing Act 2012 (NAIT), introduced in July that year.
Wrightson took an industry lead in the process, and also through the NZ Stock & Station Agents Association (NZSSAA).
Managing director Mark Dewdney said a tough lesson had been learned, and the issue had been especially disappointing "given all the good work facilitating the implementation of the NAIT scheme, an industry good initiative".
Wrightson's actions had been well-intentioned and it had made an earnest effort to be fair and transparent. In hindsight, more care should have been taken in the fees imposed.
Judge Asher said the company's action in accepting responsibility and promptly ending the price fixing had warranted a significant discount in terms of penalty.
A second company, Rural Livestock, was fined $475,000 for a similar transgression. The Commerce Commission has also filed proceedings against Elders NZ and five individuals. Settlements have not been agreed, and the matters remain before the courts.
The commission also issued warnings to several other livestock companies and the association in relation to the NAIT issue. The companies are Allied Farmers, Peter Walsh & Associates, CRT Livestock, LI Redshaw, Central Livestock, Hazlett Rural Livestock, and Southstock.
The High Court ruling said the case arose from unusual circumstances, as the companies worked together on the initiation of NAIT, and were acting in response to the new regulatory environment. "They had to work out cost structures as NAIT would not pay for or subsidise the set-up and ongoing costs of compliance with the Act. Agreeing to NAIT procedures led, it would seem almost incidentally, to decisions on the appropriate fees.''
NAIT was introduced to provide traceability of cattle and deer.
In its statement to NZX, PGG Wrightson said that implementing the scheme required the livestock business to invest in new technology and systems to ensure accurate records were kept of animals through its saleyards.
"In the absence of government funding to cover costs incurred by livestock businesses in gearing up for delivering NAIT-related services, fees were intended to be introduced by association members, principally to defray service delivery costs."
PGG Wrightson had carefully looked at what occurred and had implemented initiatives to improve internal processes and controls, Dewdney said.
