Dairy Industry

Gregory Campbell Excerpts

Wednesday 5th November 2014 Westminster Hall

[Jonathan Edwards]

That point is especially pertinent to the dairy industry, because entering the market requires a huge investment in milk parlours, and without long-term stability, the investment is too high a risk.

Plaid Cymru has called for the voluntary dairy code to be made compulsory to protect the interests of dairy farmers. This is the first big test since the voluntary code came into being following the 2012 milk crisis. If the voluntary approach fails, we will need to move to a statutory code. Competence for that lies with the Welsh Government, and I would like the relevant Welsh Minister publicly to declare her willingness to intervene if necessary.

Plaid Cymru has long campaigned to change EU procurement rules to allow sub-state Governments to strengthen domestic supply chains. We have succeeded in achieving that, but the Labour Government in Wales have not taken advantage of it. They could use the rural development programme, but they are not doing so.

I would also like the Welsh Labour Government to consider creating a dedicated promotion body for Welsh dairy produce, like Hybu Cig Cymru, which promotes Welsh red meat. Given that global demand for dairy is likely to increase, and that one reason for the current difficulties is the loss of Russian markets as a result of sanctions, the dairy sector needs a dedicated body to look for new and emerging markets. While I am on this issue, I would like to ask the Minister to look at the red meat levy, which is paid when animals are slaughtered. Hybu Cig Cymru loses out on an estimated £1 million a year because the levy is collected where the animal is slaughtered. Many animals from Wales cross the border, and that money is lost to Wales and the Welsh farming industry.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Just before the hon. Gentleman moves away from that point, on the issue of the UK-wide promotion of the dairy industry, does he agree that what we would like to see—and should see—is the UK Government actively promoting our dairy industries across the United Kingdom internationally to try to counteract the problems, and particularly what is happening in Putin’s Russia?

[Jonathan Edwards]

The hon. Gentleman makes a valid intervention. There are huge opportunities in developing markets across the world that we should be hoping to access.

Returning to the Welsh levy, there is an issue of fairness here. The previous Minister, the hon. Member for Somerton and Frome (Mr Heath), promised to reform the system, and I am glad to see him in his place today. We need the UK Government to act to ensure that Welsh farmers and our promotion agencies receive the appropriate levy for Welsh produce. If a similar levy was introduced for the dairy sector, this issue would be even more pertinent, because the vast majority of Welsh milk is processed outside our country, regrettably. It is a brilliant food source that we should be doing everything at all political levels to support. Diolch yn fawr.