Johannesberg, Jan 19 - South African competition authorities said on Friday they had reached a settlement with dairy firm Lancewood (Pty) Ltd, accused of being part of a cartel that illegally fixed milk prices.
The Competition Commission said it had negotiated an agreement after Lancewood admitted that it had been involved in illegal price information exchanges with other dairy firms.
"The company will pay an administrative penalty in the sum of R100,000 ($10,050) and has agreed to cooperate fully with the commission in its prosecution of the remaining respondents," the commission said in a statement.
It said an investigation had found evidence of price fixing for raw and processed milk "and the manipulation of the market to restrict competition" by a number of firms.
Parmalat (Pty) Ltd , Clover Industries Ltd, Clover SA (Pty) Ltd , Nestle SA (Pty) Ltd , Ladismith Cheese (Pty) Ltd, Woodlands Dairy (Pty) Ltd, and Milkwood Dairy (Pty) Ltd are the other companies facing prosecution for "anti-competitive behaviour in the milk industry," it said.