BRC DENIES MILK PRICE FIXING CLAIMS

20 September 2007

Responding to a provisional decision from the Office of Fair Trading over allegations that large supermarkets and dairy processors colluded to increase the price of dairy products, the British Retail Consortium (BRC) said retailers had not acted against the interests of customers.

British Retail Consortium Director General Kevin Hawkins said: “There was no collusion between supermarkets over milk prices and no sharing of confidential information. In 2002 there was a surplus of raw milk which led to a fall in farm-gate milk prices.

“Some individual retailers independently raised the prices charged to customers in an attempt to ensure farmers received more and were able to continue in business so ensuring future milk supplies. Indeed this was something MPs and farming groups were telling retailers they should do.

“A proportion of the increases reached farmers; some appears to have stuck to the sides on the way down the supply chain.

“At no time were retailers acting against the best interests of customers. In fact this move helped customers by ensuring they did not go short of milk.”