Oral Answers to Questions

Debate between David Heath and Andrew Selous

Thursday 6th December 2012 Commons Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)]

After months of hard work, not least by my predecessor, the right hon. Member for South East Cambridgeshire (Sir James Paice), the industry code of practice is now being translated into contracts. I am encouraged to hear of new contracts and pricing mechanisms that improve the transparency and fairness of milk prices for farmers. The Government will soon be consulting on our domestic implementation of the EU dairy package, enabling dairy farmers to form recognised producer organisations to further improve their bargaining power.

[Andrew Selous]

There has been a dairy herd of Holstein Friesians in Eggington, outside Leighton Buzzard, since 1933, but I was concerned to learn from the farmer in July that he is not confident that milk production can continue there, which would be an absolute tragedy. The farmer told me last night that he receives 30.5p per litre, but when I checked this morning, Tesco was selling milk for 86.3p per litre, which is 49p a pint. Is the Minister sure that farmers are getting a fair share, and what can we do to ensure they have a sustainable future?

[Mr Heath]

We need to do a lot of things to support the dairy industry, but I am optimistic. If we can make the voluntary code stick—I have no reason to suppose we cannot—it will go a very long way to improving the transparency of contracts, and, as the hon. Gentleman knows, the Groceries Code Adjudicator Bill is going through the House. The Department will do everything it can to maintain the profitability of producers and ensure that every part of the supply chain is fairly treated, including the retailer and the consumer.