Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Thursday 11th December 2014 Commons Chamber

[George Eustice]

My hon. Friend makes a good point. At current prices many farmers are indeed making a loss, and at the dairy supply chain forum we discussed volatility. The last two years have been a rollercoaster ride for the dairy industry—it had a dire year in 2012, last year was very good, but this year is bad again. We have considered whether we can develop a successful futures market, for example in skimmed milk powder or cheese products, to help farmers manage that volatility in future.

[Ms Margaret Ritchie (South Down) (SDLP)]

With volatility in the dairy industry impacting on farmers generally, does the Minister agree that the EU intervention threshold, which was agreed at 18p per litre in 2003, does not protect dairy farmers across the UK and is in urgent need of review? What representations will he make to Brussels on that?

[George Eustice]

I met Northern Ireland representatives from Dairy UK when I was in Brussels last week and they raised that point with me. The European Commission is looking at the intervention price, and our officials are working on what the appropriate price would be. Generally, an increase in that intervention price would tend to benefit other countries that have lower prices before it benefits UK farmers, but we are considering the issue.