PGG Wrightson, one of the largest agri-suppliers in New Zealand, is being investigated by the New Zealand competition authority over fees charged to farmers during the implementation of a national tagging programme.

The New Zealand competition authority, known as the Commerce Commission, will look at fees charged by PGG Wrightson to farmers during the adoption of the National Animal Identification and Trading Act (NAIT) and will seek a “pecuniary penalty” or fine against the company.

It is claimed PGG and some of its rivals colluded on the price of services for the tagging of cattle and other related services in livestock yards during the NAIT rollout.

In a statement to the New Zealand stock exchange, PGG said it does not believe the proposed level of the penalty will be sufficient to impact its share price.

PGG is one of the major suppliers to farmers in New Zealand, providing products such as seeds, grain, farm and irrigation equipment, consultancy services and financing. PGG also operates as a livestock trader for New Zealand farmers and has a significant property or land sales business.

Employing more than 2,000, PGG has operations throughout New Zealand as well as in Australia and parts of South America. Since 2011, PGG has been a subsidiary of Agri Corporation, a global agri-input provider based in China and listed on the New York stock exchange.