Leading milk company Express Dairies has appointed GJW to put its
case in the ongoing Monopolies and Mergers Commission (MMC)
investigation into raw milk prices and supply.
Express Dairies, alongside other milk processors like Unigate and Dairy
Crest, is concerned that the UK’s main raw milk distributor,
farmer-owned co-operative Milk Marque, is keeping milk prices
artificially high to protect farmers. GJW will lobby for a shake-up of
the milk supply system in favour of processors.
Last January, the director general of the Office of Fair Trading asked
the MMC to examine all aspects of milk supply following concerns about
the competitiveness of the milk market.
Most recently, Milk Marque, which controls 42 per cent of milk sold in
the UK, dropped assurances made to the OFT earlier on the level at which
it would set prices. As a result the major dairies boycotted the July
selling round - one of the two annual selling rounds.
Earlier this year Milk Marque said that it would only set its selling
price at a particular level if it attracted bids for at least 90 per
cent of the product.