(8 years, 7 months ago)
Commons Chamber5. What progress her Department has made on ensuring that farmers receive a fair price for milk.
8. What progress her Department has made on ensuring that farmers receive a fair price for milk.
These are undoubtedly very difficult times for many dairy farmers. The combination of oversupply around the world coupled with a weakening of demand in major markets such as China has led to a very depressed commodity price. We secured a £26 million support fund last November to alleviate short-term cash-flow pressure. We introduced a dairy supply chain code to improve dealings between dairy processors and farmers. Longer term, we are working on a project to introduce a dairy futures market to help farmers manage future risks. We are exploring the potential to facilitate investment in new dairy processing capacity, so that we can add value to our production.