OFT Must Consider Report On Liquid Milk Market
UK - The NFU has welcomed the publication of a report by Defra into the potential for GB-European trade in liquid milk which concludes there is significant evidence that the British liquid milk market cannot be treated as an isolated and insulated market.
7 September 2007
1 minute read
The report, prepared by AgraCEAS Consulting, challenges the previous assumptions made by the Office of Fair Trading that the fresh milk market is a geographically distinct and separate market – a view that has been consistently opposed by the NFU.
Tom Hind, NFU chief dairy adviser, said: “This Defra-funded study is the first piece of academic research we have seen that takes on the notion that the British liquid milk market is set apart from the wider EU dairy market. Although consumer tastes and transport complications may limit the volumes of liquid milk that are traded between Britain and continental Europe, the reports shows us that such trade exists and may grow.
“Moreover, the report confirms that the British milk market is well integrated into that of neighbouring states. It sends a clear signal to competition authorities that the wider EU dairy market must be taken as the reference when considering mergers and acquisitions between dairy companies in this country.
“While we recognise the OFT will consider any merger or acquisition proposal on its own merits, it is important that it takes account of this report and its findings. Further consolidation of the British dairy industry is a necessary and desirable step to ensuring we have the most competitive milk processing sector in the EU.”
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