The big supermarkets are being investigated following claims of price-fixing on dairy products.
It is alleged that supermarkets are conspiring to keep the price of dairy products – milk, cheese, yoghurts, etc. – artificially high.
Whether I agree with them or not depends on one thing – who is benefiting from the inflated prices? Supermarkets have been criticised continually for the past few years for paying less than cost price for milk from dairy farmers. If keeping the price of dairy products artificially high means farmers are getting more for their milk then surely that’s what people have been asking for? The supermarkets aren’t going to cut into their profits if they can avoid it – they exist to make as much profit as possible for their shareholders, not to provide a public service. All this guff about corporate responsibility is bollocks.
Of course, if farmers aren’t seeing any of the extra money then that’s another matter entirely and the supermarkets are bang out of order. Legally they’re wrong regardless of their motives because they’re operating a price-fixing cartel and that’s illegal.
Is this a case of being caught between a rock and a hard place?