Competition fine with 80 million to the milk cartel for exchanging the prices of farmers

The National Commission of the Markets and of the Competition (CNMC) counterattacks to the dairy sector with the approval of a fine of 80,6 million Euros on eight of the main ones

The National Commission of Markets and Competition (CNMC) counterattacks the dairy sector with the approval of a fine of 80.6 million euros on eight of the main producers.

The supervisor accuses them of coordinating information on livestock prices to achieve a cheaper supply, preventing suppliers from setting their own rates and hindering competition.

This behavior was carried out between 2000 and 2013 and was denounced by an association of small farmers in Castilla y León. Among the sanctioned companies are giants such as Leche Pascual, Central Lechera de Galicia (Celega), Peñasanta Food Corporation (Capsa), Danone, Lactalis Iberia Group, Nestlé Spain, Industrias Lácteas de Granada (Puleva) and Schreiber Food Spain. In addition, two associations of the dairy industry of Catalonia and Andalusia have been sanctioned.

"The anti-competitive practices carried out by the offenders have consisted of exchanging information, at the national and regional level, about purchase prices of raw cow's milk, purchase volumes of farmers and surplus milk," explains Competition in a statement.

In this way, the Competition inspectors certify that the producers of milk and derivatives ensure control of the livestock market and extend their control over the chain of sale, limiting the struggle and making the final supply more expensive. During the investigation, evidence has been found of meetings and conversations that certify the exchange of information.

"In addition, at certain times, they would have materialized in specific agreements to coordinate the purchase prices of milk and for the transfer of breeders among industrialists," the statement said.

As a consequence of this, the breeders lacked the freedom to set the price of their product and the company they supplied, distorting the normal functioning of the market for the benefit of the transformers.

According to the criteria of The Trust Project

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  • Andalusia
  • Iberia
  • Catalonia
  • Castilla y León

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