The High Court yesterday granted an interim injunction to the Competition Authority re straining two Co Meath farmers and others acting with them from blockading the premises of Natural Dairies Limited at Convoy, Co Donegal.
The order, which continues until Monday, also prevents the farmers interfering in the business of Natural Dairies, and obliges them to remove themselves, their vehicles or other obstructions on the exits from the dairies' premises.
They are also prevented from seeking to secure compliance with rates and terms for the sale of processed milk dictated by them.
The injunction was granted against Mr Patrick Jennings, of Sommerville, Co Meath and Mr Dermot Lally, of Navan, Co Meath, all persons acting in concert with them and any other persons having notice of the order.
In an affidavit presented on behalf of the Competition Authority by Mr Denis McDonald SC, the Director of Competition Enforcement within the body, Mr John Fingleton, said the primary purpose of the Convoy dairy blockade was to compel it to adopt a certain sale price for processed milk.
Since 1991 Natural Dairies had been the main supplier of all "own label" liquid milk to Dunnes Stores nationwide. In recent weeks the price of own-brand milk charged by major supermarkets to consumers had dropped considerably, and Natural Dairies had recorded a sales volume increase.
Last Tuesday the Authority received a complaint from Mr John Molloy, managing director of Natural Dairies, stating that a group of farmers had blockaded his premises and intended to continue until the company undertook to put pressure on Dunnes to raise the price of its two litre carton of milk from 86p to 95p.
He had been told Natural Dairies had been forced to give notice to all its staff and to send raw milk on for processing at a substantial loss.
Mr Fingleton said he had been informed that Natural Dairies had been unable to obtain any raw milk since the blockade began. It was costing the company up to £60,000 a day in lost sales and a further considerable amount yet to be calculated in raw milk.
He believed the blockade indicated a determined effort between the individuals involved, including both Meath farmers, to fix the price of processed milk - a practice that was prohibited by Section 4 of the 1991 Competition Act.