Scottish dairy price fix case is over

Friday, 17 October 2008

An investigation by the Office of Trading (OFT) into alleged price fixing at a number of Scottish dairies has been dropped.

The OFT had said that it was looking into the activities at Scottish Milk Dairies, Grahams, Robert Wiseman, Ballantyne, Quothquan and Renfrew, relating to market sharing claims.

But now it has suggested that the evidence against these companies is insufficient and that nothing more will be done.

"Although the evidence at the time was sufficient for the OFT to make a provisional finding of an infringement, as a result of continuing investigations ... the OFT no longer considers that it has sufficient evidence to proceed," it commented.

Head of Graham's Robert Graham admitted that an "emotional burden" has been removed thanks to the news.

"We made it clear from the outset that allegations of impropriety on our part were entirely without foundation and worked with the OFT throughout the process to ensure the reputation of our family business remained intact," he said.

Additionally, Robert Wiseman Dairies added that the decision "vindicates the position we have always maintained that this case should be closed".

Earlier this year, the company said that it was going to increase the price of milk it sells to major supermarkets because of growing costs in the supply chain.

But Asda recently said that its milk is available at 2001 prices.

Another investigation into price collusion between dairies and supermarkets continues, the OFT said.