David Morris – 2016 Parliamentary Question to the Department for Environment, Food and Rural Affairs

The below Parliamentary question was asked by David Morris on 2016-07-20.

To ask the Secretary of State for Environment, Food and Rural Affairs, if she will make representations to the Competition and Markets Authority on investigating the price of milk at major supermarkets.

George Eustice

The Competition and Markets Authority (CMA) as the UK’’s competition authority can carry out investigations where there is evidence of abuse of a dominant position or market abuse. Whilst the Government does not generally intervene in what businesses charge consumers for their goods and services we do recognise concerns about transparency and trust in the dairy supply chain. A number of supermarkets have pledged to pay a premium over and above the current market price. This is welcome and gives some respite to farmers. Some retailers have also taken steps to increase the number of dairy products they source from the UK and improve country of origin labelling on cheese.

The Groceries Code which has been in operation since 2010 and the Adjudicator which came into force in 2013 have had a positive impact on the relationship between retailers and suppliers in the dairy chain. The Code was a specific remedy recommended by the Competition Commission following an extensive investigation into the UK grocery market. A review of the Adjudicator is due this year and will include a Call for Evidence on the case for extending the Groceries Code Adjudicator’s remit in the UK groceries supply chain and, as part of this, we will look at how this can further help the farming industry.