Milk Production

Baroness McIntosh of Hudnall Excerpts

Thursday 15th January 2015 Lords Chamber

[Lord De Mauley]

My Lords, my noble friend, as always, puts her finger on a key part of the problem. I have outlined a number of measures that we are taking. I can also add to that the use of the RDP—the Rural Development Programme—to foster improvement of competitiveness and profitability, for example, by increased emphasis on value-added products, such as cheese and yoghurt. I think that is really important to our market. Once again I have to come back to you on the real importance of our work on exports.

[Baroness McIntosh of Hudnall (Lab)]

Does the Minister agree that cash flow, which he touched on in an earlier answer, is a critical matter, both for farmers and co-operatives? Can he say whether he feels that the banks are playing their part in sustaining the farming industry by supporting them through volatility in cash flow?

[Lord De Mauley]

The noble Baroness is absolutely right. Cash flow is crucial. You can be as profitable as you like, but if you have no money in the bank, you cannot pay the bills. The noble Baroness is alluding to the cash-flow problems that face not only farmers but co-operatives. First Milk is a co-operative, wholly owned by farmers, and it is in the interests of farmers that it should survive and thrive. Work such as that being done by Dairy UK, which I referred to earlier, on helping farmers with cash flow is really important. Some of the banks are doing similar work.