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Portuguese Dairies File Supermarket Price Complaint

30 January 2012

PORTUGAL - The Portuguese dairy industry has filed a complaint against supermarkets, accusing them of selling milk a uncompetitive prices to consumers.

The industry has said that all too often milk is sold on supermarket shelves at a price substantially lower than the cost of production.

Responding to this complaint, the Portuguese Food Standards Agency removed 270,000 litres of milk from the market.

The dairy industry is saying that to ensure livestock and dairy production continues in the country, milk must not be allowed to be sold at prices below the cost of production.

The industry is saying that competition laws are increasing the bargaining power of large retailers to the detriment of producers, which is having a harmful effect of farm viability. In the long run, they argue that Portugal will have to have a greater reliance on dairy imports if this practice continues.

TheCattleSite News Desk



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