Milk Production

Baroness O'Cathain Excerpts

Thursday 15th January 2015 Lords Chamber

[Lord De Mauley]

I have considered that point carefully, my Lords. The scope of the Groceries Code Adjudicator is based on a report from the Competition Commission, which found that the most significant problems in the area were experienced by direct suppliers to the UK’s 10 largest supermarkets. As a result, the Competition Commission recommended the creation of the GCA and limited its jurisdiction to the relationships between those 10 largest supermarkets and their direct suppliers. Any change to that would require primary legislation. It is a little premature to take the next step, because there is a mechanism in place for conducting a review and the first one of those is set for 31 March 2016.

[Baroness O'Cathain (Con)]

My Lords, the Question talks about the sustainability of the dairy industry. I am sure my noble friend is aware that the milk cheque is one of the most important ways of keeping agriculture going in this country. The number of dairy farmers has reduced from 30,000 about 15 years ago to 10,000 now. It seems that people are giving up. Can we impress this point on the Treasury, or whoever, and particularly on the retailers? Instead of having five private planes—in the case of one of our leading retailers—could not the retailers consider the future of agriculture in terms of the food supply to them in this country?

[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.