January 16, 2012

Russia's milk processing firms found guilty for cutting raw milk prices

Ten milk processing companies guilty of reducing raw milk purchasing prices have been found out by the Chuvash Republic's branch of Russia's Federal Antimonopoly Service (FAS), the antitrust service's branch said Friday (Jan 13).

The companies' activities in January-June 2011 were considered premeditated and anti-competitive, the watchdog also said.

In April 2011, the FAS' branch opened cases against nine milk plants following a claim submitted by the republic's economic development ministry that raw milk prices had been reduced.

A number of other companies were also investigated in relation to the matter, with 10 enterprises, including Unimilk, acquired in 2011 by Danone, later found guilty.

In addition to ordering an immediate halt to the violations, the FAS' branch bound the companies to submit a price matrix of raw milk and ready-made dairy products on a quarterly basis throughout 2012.