Oral Answers to Questions

Calum Kerr Excerpts

Thursday 5th May 2016 Commons Chamber

[George Eustice]

I understand the point that my hon. Friend makes, and as I say, these are very difficult times for farmers. People often lay the blame on supermarkets, but we have to recognise that at the root of the problem is the worldwide issue of low commodity prices. There are very low prices in New Zealand—far lower than we have here—and many people have been driven out of business there. This is a global challenge. Some of the supermarkets have stepped up to the plate and offered aligned contracts, and many of them are selling their milk at a loss; we should recognise that and give credit where credit is due. Of course, we are always trying to improve the position of farmers in the supply chain.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Perhaps there is a win:win here. The hon. Member for Kettering (Mr Hollobone) made a suggestion about Weetabix; if we advocate having British milk with it, that might offer a little solace. The Minister has spoken about a commitment to strengthening the voluntary code of practice for the dairy sector; when will that be in place?

[George Eustice]

I have already had this discussion with NFU Scotland, and I have offered to meet it to discuss its concerns. The voluntary code of practice for the dairy industry is GB-wide, as the hon. Gentleman knows, but the reality is that it tends to help farmers more in a rising market, when prices are firming, than in a difficult time in which there is over-supply. The crucial element of it is that it gives farmers the ability to walk away at three months’ notice, and that enables them to extract a better price. That obviously only works when market prices are going up, rather than down, but I have offered to meet NFU Scotland to discuss its concerns. We will review the code again with a view to strengthening and improving it where we can.