The British Retail Consortium (BRC) says that shops had not acted against the interests of consumers.

It was responding to the Office of Fair Trading's (OFT) allegations that the large supermarket and dairy groups had colluded to increase the price of dairy products.

A spokesman said the higher prices were due to a surplus of raw milk in 2002.

He added:

"Some individual retailers independently raised the prices charged to customers in an attempt to ensure farmers received more and were able to continue in business so ensuring future milk supplies.

"Indeed this was something MPs and farming groups were telling retailers they should do."