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Dairy Industry

Volume 448: debated on Thursday 6 July 2006

To ask the Secretary of State for Environment, Food and Rural Affairs if he will set up a regulator of the price of milk for a temporary period. (79755)

The Government supported the conclusion of the Environment, Food and Rural Affairs Select Committee in 2004, that there was no compelling evidence in favour of setting up a regulatory body to oversee the dairy industry. It is difficult to see how a regulator could determine a fair price other than by reference to a market price. A price regulator would almost certainly be incompatible with EU competition law and with the common organisation of the market in milk and milk products.