Milk Marque selling round fails
11 February 1999
Milk Marque selling round fails
MILK MARQUE is being forced to renegotiate with dairy processors. Its original proposals for milk pricing over the six months from April have produced bids for only one-quarter of the milk on offer.
The dairy farmers co-operative found that most of its key dairy processing companies either did not put in a bid, or bid for small quantities.
The co-op will be consulting its customers before issuing lower proposed prices later this month.
It is the second time Milk Marque has had to revise its initial proposals for milk pricing over a six-month period.
The selling process is under review as part of inquiry by the Monopolies and Mergers Commission into the supply of raw milk in the UK. The commission is due to report to the department of trade and industry on 26 February.
The proposals established in January included an increase of 0.7ppl taking the price to 21.2ppl in its varying supply contracts. The plans also involved cutting prices on two other, more expensive, types of contract offering customers greater security and predictability of supply.
- Milk Marque fails in first round, FWi, yesterday (10 February, 1999)
- Financial Times 11/02/99 page 12