Food Price Inflation

Fay Jones Excerpts
Thursday 19th May 2022

(2 years, 1 month ago)

Commons Chamber
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George Eustice Portrait George Eustice
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The Government pledged to keep spending on agriculture in cash terms the same year after year in this Parliament, and that is precisely what we are doing. The right hon. Member is correct: we are phasing out the subsidy on landownership that meant that 50% of the budget went to 10% of the wealthiest landowners in the country and replacing it with a more logical approach that is about supporting the things that farmers do for the environment. Our sustainable farming incentive in England will deliver that by helping farmers with the cost of alternatives to fertiliser to chart their course. Of course, it is for Scotland and the Scottish Government to decide what they want to do in that regard, but we have a programme that is supporting farmers in England.

Fay Jones Portrait Fay Jones (Brecon and Radnorshire) (Con)
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It is clear that food prices are up at the supermarket tills, but I am not clear about whether they are also up at the farm gate. Farmers in my constituency are being hit twice, because food is also more expensive to produce. Will my right hon. Friend confirm that he will continue to work closely with the retailers to ensure that, during this period of pressure, they give fair contracts and have good relationships with their suppliers?

George Eustice Portrait George Eustice
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My hon. Friend raises a fair point, but I point out that the farm-gate price of milk has risen by close to 30% so far this year, the price of lamb is at record levels, having just gone above £6 a kilo at the farm gate, and the same is true for beef. The price of cereals has doubled. The price of pork is also rising, partly because poultry and pork contracts tend to be linked to the cost of production. So farm-gate prices are also rising, but we recognise that farmers also have higher input costs.