14 January 1999
Milk Marque to clash with dairy firms

MILK MARQUE, the countrys biggest supplier of fresh milk, is once again on a collision course with leading dairy companies over milk pricing.

The cooperative will tell dairy processors within the next few days its indicative prices for new contracts for the six months from 1 April.

Any rise in the indicative price per litre is thought likely to attract criticism since prices for butter and skimmed milk powder have declined.

The farmer-owned co-operative set a small price increase in the previous selling round, which set prices from last October.

Past rounds have run into problems when dairy companies have refused to bid for contracts because they believed prices were too high.

The selling process is taking place as the Monopolies and Mergers Commission completes its investigation into the supply of raw milk in the UK.