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Gillian Marles reports
"The milk market in Scotland is fiercely competitive"
 real 56k

Thursday, 17 May, 2001, 18:55 GMT 19:55 UK
Milk firms under investigation
Wiseman milk
Wiseman is Scotland's biggest dairy company
Four of Scotland's biggest dairies are under investigation suspected of fixing the price of milk.

The Office of Fair Trading has visited the offices of all four and seized paperwork.

And if the OFT finds that the companies are guilty of breaking the new Competition Act, they could be fined up to 10% of their turnover.

Scotland's biggest dairy company, Robert Wiseman, was one of the four companies visited by the OFT.


We are surprised and disappointed with this turn of events as we report our progress and activity on a regular and frequent basis to the OFT

Robert Wiseman statement
The others are Graham's Dairies, based in Bridge of Allan, and Hamilton firms Ballantyne and Scottish Milk.

A statement from Robert Wiseman said it had been visited by OFT investigators last week.

"We understand that we are one of a number of dairy companies in Scotland currently co-operating with the OFT's request for information," said the company.

Wiseman said the investigation followed a nine-month Competition Commission inquiry last year, which resulted in no action being taken against the company.

"We are surprised and disappointed with this turn of events as we report our progress and activity on a regular and frequent basis to the OFT," said the company.


No assumption should be made at this stage that there has been an infringement of competition law

OFT spokesperson
"We expect a satisfactory conclusion to this matter."

The OFT confirmed that its searches had involved four Scottish businesses, but did not identify the companies involved.

It said they were part of an investigation into the supply of fresh processed milk in Scotland.

"No assumption should be made at this stage that there has been an infringement of competition law.

"We will not be in a position to decide that until we have all the facts," said the OFT.

The investigation is expected to take several months.

Punitive action

Last year the Competition Commission said that the size of Wiseman dairies was "against the public interest".

But the company was not broken up as a clear majority of the commission did not support the ruling.

Trade and Industry Minister Stephen Byers could only take action against any company if two-thirds of the commission support punitive action.

The four-strong investigation panel were evenly divided on the case and only came up with the verdict on the chairman's casting vote.

The Competition Commission had launched an investigation after allegations of "monopolistic practices" were made against the group in Scotland.

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See also:

22 Dec 00 | Scotland
Dairy giant escapes break-up
28 Jun 00 | Scotland
New move in dairy inquiry
22 May 00 | Scotland
Wiseman milk profits down
12 May 00 | Scotland
Wiseman drops milk battle
02 May 00 | Scotland
Dairy firm 'operates monopoly'
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