Dairy Industry

Baroness McIntosh of Pickering Excerpts

Wednesday 4th February 2015 Westminster Hall

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I congratulate my hon. Friend the Member for Ribble Valley (Mr Evans) on securing such a timely debate. I will share some of the evidence that the Select Committee on Environment, Food and Rural Affairs heard in addition to our conclusions. One of the most striking things I have found in representing the deeply rural constituency of Thirsk, Malton and Filey and its dwindling number of milk producers is that, in the time that the Groceries Code Adjudicator has been in place, there has not been a single investigation. I welcome the laying of the statutory instrument, but that situation must be rectified by allowing her the power not just to levy fines, but to take an investigation off her own bat. If she is not allowed to do own-initiative investigations, we will not see any progress.

It is not often that, the week after the Committee reports to the House, the Prime Minister takes up two or three of our core recommendations, but that is what happened in this case, which was very welcome indeed. I hope that the Minister will leap into action to ensure that the Groceries Code Adjudicator’s remit and the code will apply to this supply chain. There is a commonly-held belief, which has been explored on many occasions in this Chamber, that the code does not apply in this case. That leaves the small farmer exposed.

I express my hesitation about seeing further concentration in the market. We also need to look at why co-operatives work so successfully in countries such as my second homeland of Denmark but not so well here. They can negotiate collectively on price, contract terms and conditions and that must be considered.

I applaud the moves towards country of origin labelling and I press, as the whole Committee does, for an urgent review of the intervention price. It is welcome that the Government have set up, for the first time, an agriculture counsellor to be based in Beijing. The drive by the Department for Environment, Food and Rural Affairs for exports is welcome, but we must also support those producers, such as Shepherds Purse, just two fields along from where I live in North Yorkshire, who are creating cheeses that compete with many of the popular brands that we currently import.

There is a vibrant future for the dairy industry, but, should prices go up again, potential producers and farmers must look to the fact that the market is very small. We must look at the difference between the small, individual farmer and the might, weight and strength of the processor as well as that of the supermarket. I leave everyone with the thought that until that chain and that relationship is addressed, I do not see there being any change to either the dairy price or the dairy industry going forward. However, I believe that the groceries code and the adjudicator’s role are key to strengthening and restoring the balance for the dairy farmer and ensuring a sustainable future, so that the cost of a pint of milk reflects the cost of production.