Express Dairies is suing Safeway in the High Court after the supermarket chain terminated a milk supply agreement and switched to a rival.
Talks with Safeway failed, so Express issued a damages claim for breach of contract, after attempting to pursue a complaint with the Office of Fair Trading. The OFT rejected the claim because the contract was signed before the supermarket Code of Practice came into force last November.
The historic firm, founded in 1864, has struggled against over-capacity in the milk industry and the supermarkets' pricing power.
Supermarket bosses have a new nightmare. Having seen their hopes to buy Safeway kicked into the long grass, with their takeover plans now under scrutiny by the Competition Commission, they fear that the Government is plotting to foist a brand new watchdog on them.
31 March was the final deadline for their submissions to the OFT on this, before it begins a full-scale investigation.
The chief executive of one of the big supermarkets is fearful that what will emerge will be a recommendation to set up yet another regulatory body, and one that will limit their ability to set prices.
7 April 2003: Jurors taking part in the Food Standards Agency citizens' jury on GM food have delivered their verdict. For three days jurors have been quizzing witnesses to answer the question 'Should GM food be available to buy in the UK?'
This afternoon they told FSA chief executive Jon Bell that there was a majority of them in favour of GM food being available. Nine out of fifteen jurors agreed that GM food should be available to buy and six said that it shouldn't be on sale.
The citizens' jury is one of a number of activities organised by the Agency to independently assess people's views on GM food and how it relates to consumer choice. These activities will form the Agency's contribution to the wider Government debate about genetic modification.
The Commercial Farmers Group (a UK-wide organisation comprised mainly of large producers) has warned the government of the dangers of further downsizing of the industry in a House of Lords discussion paper.
TheCase for a Sustainable Agricultural Industry and National Food Security highlights the fact that production has been in decline for several years and that this has major implications for the UK's balance of payments. Henry Fell, chairman of CFG, said: "We take our food for granted, but unless we return home food production to a level of greater sustainability and profitability, then we could be in trouble.
"Growing world population, increasing prosperity in other countries, who will compete with us in food markets, and the threat of terrorism will all undermine our ability to secure our own food supplies."
