Agriculture: Dairy Farmers

Baroness McIntosh of Pickering Excerpts

Monday 22nd February 2016 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask Her Majesty’s Government what estimate they have made of the impact on dairy farmers of the latest fall in milk prices.

[Baroness McIntosh of Pickering (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and refer to my entry in the Register of Lords’ Interests.

[Lord Gardiner of Kimble (Con)]

My Lords, increased global milk production, along with the Russian trade embargo and weaker demand in China, has resulted in surplus stocks and downward pressure on worldwide prices. This has had a significant impact on British farmers. Average incomes are expected to fall to £46,000 in 2015-16, although there are considerable variations. Some farmers have sought to offset low prices by producing more. Lower prices for feed, fertiliser and fuel have also helped to reduce farmers’ costs.

[Baroness McIntosh of Pickering]

Will my noble friend agree to review the remit of the Groceries Code Adjudicator to end the gross imbalance between small, often family, dairy farmers and huge processors, many of which are seeking to consolidate, and put an end to the retail price war that is damaging the future of the family dairy farmer?

[Lord Gardiner of Kimble]

My Lords, I should declare an interest in that I come from a long-standing dairy farming family. I therefore clearly have considerable sympathy with the plight of dairy farmers. The Groceries Code Adjudicator has no powers over prices. However, we are looking at a number of issues in relation to suppliers and processors to see whether there are ways in which we can make improvements. I am pleased that a number of supermarkets—I encourage other chains to do so—see that they have a responsibility to the domestic dairy industry.