Select Committee on Administration Appendices to the Minutes of Evidence


APPENDIX 22

Letter to James Gray MP from Mr John Tuck

As a member of Milk Marque I am awaiting the publication of the Monopolies and Mergers Commission report on the supply of raw milk, with interest and some concern. I joined Milk Marque, not because I had any thought of making quick profits, but because I felt it was the best way I could secure a future for myself and my son Stephen in dairy farming. Stephen graduated last summer with a Degree in Agriculture from Nottingham University, and is currently working on dairy farms in New Zealand gaining more experience. Stephen and I believe that the "Collaborative Marketing Initiative" launched by the Government in December is sensible, and that Milk Marque is the type of farmer-owned business that this initiative should encourage.

Currently Milk Marque is large, but certainly not dominant in the marketing of raw milk in England and Wales. In terms of the whole of the United Kingdom (which is the reference of the Monopolies and Mergers Commission) it is small relative to the whole market, or compared with other farmer-owned co-operatives.

Scare stories about Milk Marque being able to manipulate milk prices if it is allowed to process its own milk should be discounted. No organisation can afford to acquire and run processing plant, pay over the market price for its raw materials and sell to consumers in a competitive market. Those who oppose Milk Marque's acquisition of processing capacity do so out of self interest not conviction.

Please will you put these points forward in any discussions you may have with fellow Members, and will you please insist that any action that the Government takes in response to the Monopolies and Mergers Commission report accords with the "Collaborative Marketing Initiative".

26 March 1999


 
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