Accusations of Inaction in Spain's Milk Price Pact
A new legal battle for transparency in the Spanish dairy industry has emerged, featuring a lawsuit against the National Commission on Markets and Competition (CNMC). The Union of Unions of Farmers and Ranchers has brought the case to the National Court, accusing the regulator of inaction after a complaint alleging a milk price-fixing pact was shelved. This legal move underscores the agricultural sector's frustration with what it perceives as insufficient protection.
The conflict's origins trace back to a 2022 complaint where the Union of Unions accused several major distribution groups of coordinating to set the price of private-label UHT milk since 2018. According to the organization, this anti-competitive behavior led to harmful price uniformity across the entire dairy value chain, violating the Competition Defense Act.
The legal action is not against the companies accused but targets the CNMC's decision to archive the case last June. The agricultural organization laments that despite the evidence presented and nearly three years having passed, the CNMC has not conducted a thorough investigation. The lawsuit seeks to have the National Court overturn the case's closure and mandate an investigation to ensure a fair, competitive market.
The potential consequences of this alleged price-fixing are particularly severe for milk producers. The Union of Unions claims that low retail prices prevent farmers from covering production costs. This situation affects not only profitability but discourages investment, hastens farm closures, and seriously undermines the sustainability of the dairy sector.
In summary, this legal challenge demonstrates the primary sector's determination to fight for their rights and market transparency. The outcome of this judicial contest is crucial as it will determine the CNMC's accountability and send a powerful message about the need for stricter regulatory oversight to protect the weakest links in the agri-food chain and ensure a fair future for farmers.
