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| Version 4 | Version 5 |
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| Supermarkets admit milk price fix | Supermarkets admit milk price fix |
| (20 minutes later) | |
| Sainsbury's and Asda have admitted fixing the price of milk and cheese following an inquiry by the Office of Fair Trading (OFT). | Sainsbury's and Asda have admitted fixing the price of milk and cheese following an inquiry by the Office of Fair Trading (OFT). |
| The supermarkets, along with a number of dairy firms, have agreed to pay fines totalling at least £116m. | The supermarkets, along with a number of dairy firms, have agreed to pay fines totalling at least £116m. |
| Cases against Tesco and Morrisons will continue after no deal was struck. | Cases against Tesco and Morrisons will continue after no deal was struck. |
| The OFT said that its evidence found that while dairy product prices went up after the collusion, the amount received by farmers did not increase. | |
| Immunity | Immunity |
| In September, the watchdog provisionally found evidence of collusion by 10 firms relating to price-setting in 2002 and 2003. | In September, the watchdog provisionally found evidence of collusion by 10 firms relating to price-setting in 2002 and 2003. |
| Now Sainsbury's and Asda have admitted price-fixing of milk and cheese, as has Safeway - before it was bought by Morrisons. | Now Sainsbury's and Asda have admitted price-fixing of milk and cheese, as has Safeway - before it was bought by Morrisons. |
| Safeway has also admitted colluding on the price of butter. | Safeway has also admitted colluding on the price of butter. |
| We are disappointed that we have been penalised for actions that were intended to help British farmers Justin KingChief executive, Sainsbury's Q&A: Dairy price fixing | |
| Dairy processors Dairy Crest, the Cheese Company and Wiseman also reached agreement with the watchdog. | Dairy processors Dairy Crest, the Cheese Company and Wiseman also reached agreement with the watchdog. |
| Having admitted liability in principle, they now face smaller fines as a result, the OFT has said. | Having admitted liability in principle, they now face smaller fines as a result, the OFT has said. |
| Another dairy firm, Arla, has been given immunity from fines if it continues to co-operate with the investigation. | Another dairy firm, Arla, has been given immunity from fines if it continues to co-operate with the investigation. |
| But Tesco, Morrisons and the dairy firm Lactalis McLelland are challenging the OFT findings. | But Tesco, Morrisons and the dairy firm Lactalis McLelland are challenging the OFT findings. |
| 'Disappointed' | 'Disappointed' |
| The Competition Act of 1998 prohibits agreements, practices and conduct that may have a damaging effect on competition in the UK. | The Competition Act of 1998 prohibits agreements, practices and conduct that may have a damaging effect on competition in the UK. |
| The provisional OFT report from September said the collusion saw customers being charged 3p extra for a pint of milk and 15p extra per quarter-pound of butter. | The provisional OFT report from September said the collusion saw customers being charged 3p extra for a pint of milk and 15p extra per quarter-pound of butter. |
| This agreement removes a long shadow hanging over the company Alan WisemanWiseman Dairies | This agreement removes a long shadow hanging over the company Alan WisemanWiseman Dairies |
| The overcharging also led to customers being allegedly overcharged 15p per half-pound of cheese, the watchdog said. | The overcharging also led to customers being allegedly overcharged 15p per half-pound of cheese, the watchdog said. |
| Sainsbury's, which has agreed to pay £26m, said its price initiatives in 2002 and 2003 "were designed to help British dairy farmers at a time of considerable economic pressure and public debate about whether farmers were getting a fair price for their products". | Sainsbury's, which has agreed to pay £26m, said its price initiatives in 2002 and 2003 "were designed to help British dairy farmers at a time of considerable economic pressure and public debate about whether farmers were getting a fair price for their products". |
| "We are disappointed that we have been penalised for actions that were intended to help British farmers, but recognise the benefit of a speedy settlement with the OFT," chief executive Justin King said. | "We are disappointed that we have been penalised for actions that were intended to help British farmers, but recognise the benefit of a speedy settlement with the OFT," chief executive Justin King said. |
| Asda did not reveal the size of its fine, although it is understood to be less than that faced by Sainsbury's. | Asda did not reveal the size of its fine, although it is understood to be less than that faced by Sainsbury's. |
| A spokesman said there were "regrets" at the firm, but that its intention "was to provide more money for dairy farmers, who were under severe financial pressure at the time". | A spokesman said there were "regrets" at the firm, but that its intention "was to provide more money for dairy farmers, who were under severe financial pressure at the time". |
| 'Pressure' | 'Pressure' |
| Dairy Crest, which will pay £9.4m, said that the pricing policy occurred in the aftermath of the foot-and-mouth outbreak. | Dairy Crest, which will pay £9.4m, said that the pricing policy occurred in the aftermath of the foot-and-mouth outbreak. |
| "The implementation of these initiatives was very well publicised at the time and received widespread support including strong political backing," it said. | "The implementation of these initiatives was very well publicised at the time and received widespread support including strong political backing," it said. |
| Wiseman Dairies, which faces a £6.1m bill, said that "every penny of additional revenues paid to Wiseman was passed directly to our suppliers". | Wiseman Dairies, which faces a £6.1m bill, said that "every penny of additional revenues paid to Wiseman was passed directly to our suppliers". |
| "Whilst we are disappointed with the outcome of the investigation, this agreement removes a long shadow hanging over the company," chairman Alan Wiseman said. | "Whilst we are disappointed with the outcome of the investigation, this agreement removes a long shadow hanging over the company," chairman Alan Wiseman said. |
| The National Farmers' Union (NFU) did not want to comment on the OFT announcement. | The National Farmers' Union (NFU) did not want to comment on the OFT announcement. |
| "This was a period of time that was extremely difficult for dairy farmers when prices were very low for a sustained period and there was great pressure on dairy companies and retailers for a farm gate price increase," an NFU spokesman said. | "This was a period of time that was extremely difficult for dairy farmers when prices were very low for a sustained period and there was great pressure on dairy companies and retailers for a farm gate price increase," an NFU spokesman said. |
| "We are pleased to say that the price for milk is now significantly higher, largely due to changes in the global market. | "We are pleased to say that the price for milk is now significantly higher, largely due to changes in the global market. |
| "There is also much progress being made in developing dedicated and integrated supply chains between dairy farmers, processing companies and retailers." | "There is also much progress being made in developing dedicated and integrated supply chains between dairy farmers, processing companies and retailers." |
| Are you a dairy farmer or otherwise affected by this story? Send us your comments by filling out the form below. | Are you a dairy farmer or otherwise affected by this story? Send us your comments by filling out the form below. |