Question

To ask the Secretary of State for Business, Innovation and Skills, if he will hold discussions with the major supermarkets on measures to reduce the practice of suppressing retail milk price as a loss leader.

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 the concerns over the current pressures on milk prices. That is why my hon Friend the Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs brought forward and chaired a meeting of the Dairy Supply Chain Forum last week.

Members, which include retailer representatives, discussed the recommendations made in the recent independent review of the dairy industry voluntary Code of Practice, one of which was to explore the possibility of expanding adoption of the Code within the supply chain to include retailers.