“Supermarkets are keeping prices of dairy products high”

Local Euro MP Brian Simpson has reacted angrily to a report by the Office of Fair Trading which alleges the big four supermarkets and milk processors have kept prices of dairy products high whilst at the same time forcing down the amount paid to the farmers. “For nearly twenty years, supermarkets have been aggressively pricing milk down which resulted in a serious crisis in the dairy farming sector with the price of milk paid to the farmers dropping from 25p a litre to 16p a litre. Now we hear allegations from the OFT that this untidy alliance of supermarkets and milk processors have been keeping their prices artificially high, whilst ripping off farmers” stated Mr Simpson. Whilst the OFT does not mention specific brands, it is believed that the five processors mentioned include Arla Foods (Lurpack and Anchor Butter) and Dairy Crest (Utterly Butterly and Cathedral City Cheese). The supermarkets and milk processors have until the end of the year to respond to the allegations and to make representations to the OFT before a final decision is made. However, Mr Simpson is adamant that if found guilty, severe punishment should be given out similar to that handed out recently to British Airways. “Farmers have been complaining for years at the treatment given to them by the big supermarkets. If this investigation proves that the supermarkets and the processors have rigged the market, then that’s illegal and I would hope the punishment would be similar to that given to BA” (a fine of£121.5m) concluded Mr Simpson .