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Union challenges MMC report

10 August 1999

Union challenges MMC report

THE National Farmers Union is to seek a judicial review of the recommendations of the Monopolies and Mergers Commission report on milk…more…

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Union challenges MMC report

10 August 1999
Union challenges MMC report

THE National Farmers Union (NFU) is to seek a judicial review of the recommendations of the Monopolies and Mergers Commission (MMC) report on milk.

The union is making its legal challenge because it is concerned about the reports recommendations which effectively bar dairy farmers from forming co-operatives and investing in milk processing themselves.

Lawyers will claim the report was based on information that was outdated and had little regard to market conditions across Europe.

The report, published in July, was critical of farmers co-operative Milk Marque, saying it had manipulated its selling system to keep milk prices high.

It also objected to the dairy co-op processing milk because of its dominant market position.

The report also recommended the break-up of Milk Marque to end its monopoly power. This recommendation has been over-ruled by Stephen Byers, trade and industry secretary.

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