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Use Fines to Benefit Producers – says CLA

Use Fines to Benefit Producers – says CLA Fines imposed on supermarkets for price fixing on dairy products should be used to help the beleaguered dairy industry – according to the CLA, the rural economy experts.

Dr Charles Trotman, CLA Rural Economy Adviser, said: "The decision by Asda and Sainsbury to admit their part in this price fixing scandal vindicates our view that the dairy farmer did not benefit from higher prices and that the prices paid by consumers were somehow 'lost' in the supply chain.

The Office of Fair Trading inquiry alleged that a number of retailers and dairy processors had colluded to fix the price of milk and dairy products during 2002 and 2003.

"Now that the OFT has imposed fines we say that this money should be used to provide direct help to the producers in the dairy industry."

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Dr Charles Trotman
Head of Rural Business Development

An economist, advises on rural economic issues, particularly food policy, rural tourism, equine issues and telecommunications policy.

T: 020 7460 7939
F: 020 7235 4696
charles.trotman@cla.org.uk

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