Sainsbury's and ASDA, along with a number of dairy farms, will face fines of at least £116 million. The fines will be smaller than they could have been because the guilty parties admitted liability in principle.

Safeway also admitted price fixing in 2002 and 2003, before it was bought by Morrisons. Processors Dairy Crest, The Cheese Company and Wiseman also reached agreement with the Office of Fair Trading (OFT).

Dairy firm Arla has received immunity from prosecution so long as it continues to co-operate with the investigation. The OFT said it would continue with its case against Morrisons, Tesco and dairy firm Lactalis McLelland.