OFT rejects dairy cartel inquiry

THE OFFICE of Fair Trading has decided not to launch an investigation into the three major UK dairy processors. 

Farmers for Action had written to the OFT calling for an inquiry into whether Dairy Crest, Robert Wiseman Dairies and Arla have been operating as a cartel.

The OFT stated that the evidence submitted by FFA was insufficient and did not necessarily suggest that “processors have co-ordinated their price changes”.

But it still stated that it would “continue to keep the market under review”.

However, FFA chairman David Handley said he was not happy with the response from the OFT and told FW that he would pursue the matter further.

He also said he had in mind taking the OFT to task, arguing that the speed with which it appeared to have looked at the matter was incredible.

Mr Handley claimed that the OFT had not acted in the spirit of its chairman, John Vickers, who has said that “trading fairly benefits both the trader as well as the customer”.