Dairy Industry

Debate between Clive Betts and Andrew Griffiths

Thursday 13th September 2012 Westminster Hall

[Andrew Griffiths]

I thank my hon. Friend. I am left with a marvellous image of him up to the navel in milk. I know that he has done his best to support dairy farmers in his constituency.

We got to this point because dairy farmers felt that they had no choice. They were faced with a further 2p cut in their prices, and that was a cut too far. They would not have been able to survive. Dairy farming would not have been sustainable at that level. It is almost unique that having had the 2.5p reinstated in many cases, many dairy farmers are still only meeting the cost of production. In what other industry do we expect producers to sell their product at the cost of production? We do not say to Toyota that we want to buy a Prius at the cost of production or to Apple that we want to buy the iPhone 5 at the cost of production, yet we expect our dairy farmers to survive by selling their product at the cost of production. That is absolutely unsustainable, which is why it is so important that we, as Parliament and as a society, get behind our dairy farmers. If we do not, we will lose the industry for ever.

We need to be aware of why we got ourselves in this situation: it was a case of supermarkets using milk to tempt people in, just as they have with my other beloved product, beer. They have driven down the price, and milk processors, to chase supermarket contracts, have put pressure downwards on our farmers to the point at which the pips are beginning to squeak.

I shall make a few quick points to close. First, we all recognise that more than 90% of the milk for the liquid market is produced here in the UK, but just a third of the butter and half the cheese products on our supermarket shelves are produced from British milk. We must do more to get into that very lucrative market, which could save our dairy industry. Secondly, we have heard a lot about the groceries code adjudicator and the idea that it must have teeth. The industry is setting so much store by what the groceries code adjudicator can deliver in future, and we must make sure that we arm it with the tools that it needs to do its job. Thirdly, some £5 million has been made available to dairy farmers under the rural economy grant. There are rumours and concerns among farmers in my constituency that, although that money would help them to survive, not all of it will reach dairy farmers, so I would be grateful for clarification on how the scheme will operate.

We recognise that the land that we live in is green and pleasant because it is farmed and because our farmers make such a massive contribution. [Interruption.] The phrase “for whom the bell tolls” comes to mind. It tolls now not only for me, but for our dairy industry, and it is imperative that we, as Parliament and as a society, offer a lifeline and support to the great British dairy industry.

[Mr Clive Betts (in the Chair)]

To make sure that everyone can contribute, I will now limit speeches to six minutes absolutely, with no injury time.