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Government orders Milk Marque reform

07 July 1999
Government orders Milk Marque reform

THE government has demanded that Milk Marque reform its sales procedures – but has rejected a recommendation to break up the farmer-owned cooperative …more…



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Government orders Milk Marque reform

07 July 1999
Government orders Milk Marque reform

THE government has demanded that Milk Marque reform its sales procedures, but has rejected a recommendation to break-up the farmer-owned cooperative …more…



todays news



 on GM crops – CLICK HERE

Euro1 = £0.6514 £1 = Euro1.5352 
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Government orders Milk Marque reform

07 July 1999
Government orders Milk Marque reform

By Johann Tasker

THE government has demanded that Milk Marque reform its sales procedures – but has rejected a recommendation to break up the farmer-owned cooperative.

The move follows the publication yesterday (Tuesday) of the long-awaited Monopolies and Mergers Commission (MMC) report on the supply of milk in Great Britain.

An 18-month MMC inquiry found that Milk Marque, which is responsible for nearly half of the raw milk sales in Great Britain, is exploiting its monopoly position.

The cooperative has been able to use its selling system to discriminate and control the amount of milk available to milk processors over the past year, said the report.

Stephen Byers, the Secretary of State for Trade and Industry, unveiled the reports findings, saying he wanted major changes to the way Milk Marque operates.

“Consumers pay more for their milk than they should, and the competitiveness of the dairy processing sector is being damaged,” said Mr Byers.

But an MMC recommendation to enforce a break-up of Milk Marque was rejected on the basis that it would be a “drastic step” which would adversely affect farmers.

The break-up of Milk Marque would have created one independent body to sell milk on a commercial basis, as well as a second competing body to engage in processing.

Mr Byers rejected the recommendation, saying that the idea would adversely affect too many dairy producers and take too long to implement.

“An imposed restructuring of Milk Marque would be a drastic step which would affect a large proportion of the farmers in England and Wales,” he said.

“I am also conscious that this remedy would take a considerable time to put fully into affect: perhaps as long as two years.”

A wider debate about the future of Milk Marque is now on the cards, and Mr Byers has already asked the director-general of Fair Trading for further advice.

However he insisted: “It is clear that Milk Marque must reform its sales procedures.”

The director-general will report back to Mr Byers before the year-end after consulting Milk Marque and its customers on what changes should be made.

Under the Competition Act introduced last year, Milk Marque will be subject to prohibitions on anti-competitive behaviour and abuse of market power from next March.

The government has also accepted an MMC recommendation to implement a number of interim remedies to prevent Milk Marque abusing its market power in the meantime.

The MMC concluded that Milk Marques planned increase in its milk-processing capacity was likely to operate against the public interest by extending its monopoly.

Milk Marque “should not be allowed to extend its processing activities in this way”, said Mr Byers.

Milk Marque would be asked not take any further steps towards extending its processing interests without first seeking permission to do so, he concluded.

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Government orders Milk Marque reform

06 July 1999
Government orders Milk Marque reform

THE government has demanded that Milk Marque reform its sales procedures, but has rejected a recommendation to break-up the farmer-owned cooperative …full details…



todays news



 on GM crops – CLICK HERE

Euro1 = £0.6514 £1 = Euro1.5352 
Help a child and win a Fastrac
ADAS, CLA and NFU membership services
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    Read more on:
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Government orders Milk Marque reform

06 July 1999
Government orders Milk Marque reform

THE government has demanded that Milk Marque reform its sales procedures to prevent the cooperative from exploiting its dominant market position …more…



todays news



 on GM crops – CLICK HERE

Euro1 = £0.6514 £1 = Euro1.5352 
Help a child and win a Fastrac
ADAS, CLA and NFU membership services
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Government orders Milk Marque reform

06 July 1999
Government orders Milk Marque reform

By FWi staff

THE government has demanded that Milk Marque reform its sales procedures to prevent the cooperative from exploiting its dominant market position.

But ministers have rejected the full-scale restructuring of Milk Marque as an option which would have introduced “worrying uncertainties for the industry”.

The move follows the publication this afternoon of the long-awaited Momopolies and Mergers Commission (MMC) report on the supply of milk in Great Britain.

The report was unveiled by Stephen Byers, the Secretary of State for Trade and Industry, who announced he is requiring major changes to the way Milk Marque operates.

But Mr Byers rejected an MMC recommendation to enforce a break-up of Milk Marque, saying that doing so would be a drastic step which would adversely affect farmers.

Full details to follow…

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Government orders Milk Marque reform

06 July 1999
Government orders Milk Marque reform

 

THE government has demanded that Milk Marque reform its sales procedures to prevent the cooperative from exploiting its dominant market position


Watch FWi for more details…

todays news



 on GM crops – CLICK HERE

Euro1 = £0.6514 £1 = Euro1.5352 
Help a child and win a Fastrac
ADAS, CLA and NFU membership services
Click the logos

      



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