03 July 1998
Milk Marque raises tensions with milk price hike

THE Dairy Industry Federation (DIF) attacked a 10% increase in Milk Marques indicative prices for raw milk yesterday as “classic monopolist abuse at its worst”.

The new increase means milk sold on the cheapest contracts would cost the processors 21.5ppl, up from 19.5p. It will affect contracts beginning in October.

Milk Marque also said it would remove the “90% rule” agreed with the Office of Fair Trading from the selling round. Under this rule, if the dairy farmers co-operative fails to attract bids for at least 90% of the milk on offer, it must lower prices and hold another round of bidding.

Now the DIF intends to complain to the competition authorities which are already investigating the supply of raw milk in the UK.