Scotch Relief Over Price-fix Clearance

UK - NFU Scotland has expressed its satisfaction at the closure of the Office of Fair Trading (OFT) investigation into six Scottish dairies, but is dismayed at the amount of time and money that has been spent during the two year investigation.

21 October 2008

1 minute read

Europe

The investigation began in 2006 to assess the activities of Graham’s, Scottish Milk Dairies, Quothquan, Renfrew, Wiseman and Ballantyne, who were all accused of colluding on pricing, price rises and arrangements not to compete.

Following a finding that there was insufficient evidence against the firms, the OFT has dropped the case.

Willie Lamont, NFU Scotland’s Milk Committee Chairman, said:

“This investigation has been a disgraceful waste of both time and money. Not only the OFT, but also all of the firms who stood accused, have wasted time and money on this investigation.

“It has cost these firms money and time in order to defend their name and this will mean that their profits, and thus their ability to reinvest and offer better prices to producers, will have been compromised.

“We believed from the start that there was insufficient evidence. It is my belief that there are other areas of the supply chain, particularly at the retail end, where the OFT would be better to concentrate its resources rather than attacking processors.”