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TEXT ONE Tesco ispreparing a legal battle to clear its name of involvement in the dairyprice-fixing scandal that has cost consumers 270 million. Failure to provethat it had no part in collusion with other supermarkets and dairy processorsmay land it with a fine of at least 80 million. The Office of Fair Trading said yesterday that Asda, Sainsburys and the former Safeway, plus thedairy companies Wiseman, Dairy Crest and Cheese Company, had admitted being ina cartel to fix prices for milk, butter and cheese. They were fined a total ofjust over 116 million as part of a leniency deal offered by the watchdog to companiesthat owned up quickly to anti-competitive behaviour. Officials atthe OFT admitted privately that they did not think they would ever discoverwhich company or individual had initiated the pricing formula. But the watchdogrecognises that at the time supermarkets were under pressure from politiciansand farmers to raise the cost of milk to save dairy farming, though it is notcertain that money found its way to farmers. The OFT claimed in September thatit had found evidence that the retail chains had passed future milk prices todairy companies, which then reached a fixed price among themselves. The averagecost to each household is thought to be 11.25 over 2002 and 2003. Prices wentup an extra 3p on a pint of milk, 15p on a quarter of a pound of butter and 15pon a half pound of cheese. There is no direct recompense for consumers,however, and the money will go to the Treasury. The National Consumer Councilgave warning that the admissions would dent consumer confidence in leading highstreet names and that people would become sceptical of their claims. FarmersFor Action, the group of farmers that has led protests over low milk pricessince 2000, is seeking legal advice on whether it can now bring a claim forcompensation. | 
