UK multiples say they could face the wrath of government competition officials if they step in to help British dairy farmers by fixing the price of milk. Safeway and Waitrose say they would keep their prices stable in the wake of a demonstration in London this week which saw a batallion of angry dairy farmers complain about rock bottom prices. The NFU claims more than 4,200 dairy farms have gone out of production in the last four years ­ one in every six farms. It says producer prices for raw milk have fallen to 8.5p a pint, putting the future of many dairy farmers at risk. This compares to the 26p supermarkets charge for a pint ­ 17p if bought in a four-pint polybottle. But Safeway and Waitrose say they are facing opposition from other multiples Safeway communications director Kevin Hawkins said: "If we charge more for our milk, we can only do it if all the supermarkets move at the same time." Waitrose says it will bear the cost of a further fall in price to protect farmers. But Asda, Tesco and Sainsbury say they are concerned the Office of Fair Trading and the Competition Commission could take action against them as a price fixing cartel if prices are fixed. Industry sources say the multiples are in a "tricky" position ­ if they fix the price they help Britain's crisis ridden dairy farmers, but put themselves under scrutiny from the OFT and the CC. Sainsbury says it is meeting the NFU to discuss the issue. Asda says it continues to support farmers by buying only British milk. Tesco was unavailable for comment. ·For full story, see Provisions page 24 {{NEWS }}

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