Agriculture: Dairy Prices

Baroness Bakewell of Hardington Mandeville Excerpts

Tuesday 28th April 2020 Lords Chamber

[The Lord Speaker]

We have had the supplementary from the right reverend Prelate, so we will move on to the noble Baroness, Lady Bakewell of Hardington Mandeville.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, dairy farmers desperately need certainty for the price of milk. It is estimated that 20 million litres of milk would normally go into the food service sector. Only 20% of this market is still viable due to lockdown. The national dairy herd is nearly 2 million, with an estimated 80,000 cows likely to be culled if financial support is not forthcoming. Once herds have been culled, it will take a long time to rebuild capacity. Farmers want to be ready to meet demand once restrictions are lifted. The financial support legislation promised on 17 April has yet to be laid. Can the Minister say when this lifeline will come forward for legitimate inclusion in statute?

[Lord Gardiner of Kimble]

My Lords, it is very important for me to say that the easement of competition law for the dairy sector—a statutory instrument, which is widely supported by the devolved Administrations and industry—will be retrospective to 1 April. That will ensure that the competition rules are relaxed for the dairy sector temporarily to allow retailers, suppliers and logistics services to work together. This has allowed the dairy industry to redirect some of its supplies to retailers. Clearly, Defra is working very closely on this. It is an issue that affects, as has been said, those farmers who are supplying the food service sector, and we are working with others to ensure that the situation improves for those farmers affected.