Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.
Sign up for our Public Policy newsletter
You must correct or enter the following before you can sign up:
Thank You!
Law360 (April 20, 2020, 9:48 PM EDT) -- As retail and restaurant closures enacted during the coronavirus pandemic slash the demand for milk, the U.K. has said it plans to relax competition rules governing the dairy industry so farmers and producers can team up to redirect surplus supply.
Legislation working through the British government will allow dairy farmers and producers to join forces in ways that previously would have run afoul of antitrust laws, including sharing labor and facilities or cooperating on production decreases, according to a Friday announcement.
The unitive measure will also allow the industry to more easily identify any pockets of hidden capacity in the supply chain and put the extra milk to use, according to the British government's announcement.
"COVID-19 presents an enormous challenge to the country. We must be adaptable and help businesses implement creative solutions to new problems," Business Secretary Alok Sharma said in a statement. "Temporarily relaxing competition law for the dairy sector will mean farmers can work together to minimise waste of milk, and use it to make other essential dairy products."
The U.K. has already relaxed competition rules at the retail level, last month announcing an initiative dubbed "feed the nation" that would allow retailers to share data with each other on stock levels; cooperate to keep shops open; and share distribution depots, delivery vans and staff to help meet demand.
The government said it took this latest step in response to reports from farmers that the immediate and significant drop-off in demand from global closures in the hospitality sector left processors with high stocks but nowhere to send their product.
"We've heard loud and clear our dairy farmers' concerns which is why we are further suspending competition rules law to allow dairy farmers to work together on some of the most pressing challenges they are facing," Environment Secretary George Eustice said Friday.
--Editing by Daniel King.
For a reprint of this article, please contact reprints@law360.com.
