Some of the main UK supermarkets have been accused of fixing the price of many dairy products. The Office of Fair Trading is looking into claims that whilst the price paid to the farmer stayed the same and even fell over a 6 year period the price the consumer paid in the supermarket went up.
In 2001 the supermarkets paid the farmgate 18.47pence for a litre of milk and charged 42.7p whereas in 2007 the supermarkets paid the farmgate 18.08p a litre but charged 56.3p.
The Office of Fair Trading, the government fair trade watchdog, estimates that consumers have paid around £270 million more than they should have done for many dairy products.
Supermarkets Tesco, Sainsbury’s, Morrisons and Asda are to examine the report whilst the farmers processors, Dairy Crest, Arla, Lactalis McLelland, The Cheese Company – part of Milk Link – and Wiseman also are implicated in an agreement to fix prices. Morrisons may have inherited a policy that Safeway undertook prior to being bought by Morrisons.
Some think that the dairy processors may have colluded with the supermarkets in an attempt to raise the falling price being paid at the farmgate.
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