Supermarkets have kept most of the profits from increased milk prices over the
past decade for themselves, the Competition Commission has claimed.
The retail price rose from 41ppl in 1994 to 52ppl in 2006, the Commission noted in its report this week. "The benefit of increases since 1999 has generally been retained by grocers. Farmer and retailer shares of the retail price have moved in opposite directions during this period, with processor margins staying relatively constant," the report said.
However, hikes since 2006 in both the retail and farmgate price mean some critics say the report is outdated.