5 June 1998

Milk monopoly evidence

THE NFU gave evidence on Monday to the Monopolies and Mergers Commission as part of its investigation into the supply of raw milk in the UK.

NFU president Ben Gill highlighted the problems faced by the industry, and called for the immediate end to the 90% rule in Milk Marques bidding process which forces the co-operative to auction all its supplies at lower prices if more than 10% remains unsold.

"We are also in the process of discussions to reform the European dairy regime. Within the context of Agenda 2000 these reforms will mean that the dairy industry will be increasingly market driven.

"It is vital that the entire UK dairy industry supply chain is functioning efficiently and effectively in the face of growing international competition," he said.