Dairy Industry

Heather Wheeler Excerpts

Wednesday 4th February 2015 Westminster Hall

[Mr Nigel Evans (Ribble Valley) (Con)]

I am grateful for the opportunity to lead this debate on the dairy industry under your chairmanship, Sir Roger.

This is a time of deep uncertainty for many farmers, as they have seen huge volatility in the price that they receive for milk over the past three years. The dairy industry is vital for the United Kingdom, but I hope hon. Members will excuse me if I address the challenges facing the industry through the prism of my rural constituency, Ribble Valley. The industry is simply the backbone of the constituency. Some of the farmers to whom I spoke can trace their farms back several hundred years. Generations have worked the land and shaped its appearance and character.

From a food security point of view, the industry is simply essential. Its liquid market is strong; of course, we also have some of the most recognised cheeses in the world, particularly the tasty, crumbly, creamy and mature Lancashire cheeses that are made by some of the most famous family names and sold throughout the world. Milk is also processed into other commodities, including yoghurts, butter and powdered milk.

The by-product of the industry is amazing: rolling countryside that attracts a large number of tourists, providing income for bed and breakfasts, amazing hotels and companies that source food and beers, as well as providing a large number of local jobs. Then there are the gastro pubs. There are far too many to mention, but we have the Campaign for Real Ale pub of the year, the Swan with Two Necks in Pendleton, and, just 2 miles away from there, the food pub of the year, the Freemasons at Wiswell. Originally I had planned to mention all the pubs, delicatessens, restaurants and amazing quality shops in my constituency, but my speech became a travelogue for Ribble Valley; that is what the dairy industry has done for my area. The Ribble Valley food trail is now firmly a part of why visitors come to the area, and those visitors keep small villages such as Rimington, Clitheroe, Longridge, Lostock Hall, Chipping, Waddington and Mitton alive.

The recent investment in local businesses runs to millions of pounds. The restaurants and hotels in the James’s Places group are found throughout the valley, representing big investments in the area. The Aspinall Arms in Mitton has just seen massive investment, as have the White Bull in Gisburn, which has reopened after being closed for over a year, and the Derby Arms in Longridge. My point is that without the backbone of the dairy industry the whole fabric of the area simply would not exist.

Anyone can see the pride and worth of the industry as they travel through the area, but it is especially clear at the agricultural shows, such as the Chipping show, the Hodder Valley show and the Longridge show. I am proud to say that the Royal Lancashire show will be part of the local calendar once again this year, on 7, 8 and 9 August. [Interruption.] My hon. Friend the Member for Stone (Sir William Cash) has just pushed a note to me saying, “Don’t forget to mention the Shireburn Arms”—that is just down from Stonyhurst college, where he went to school.

My village of Pendleton is relatively small. It has three dairy farms of different sizes. John Cowperthwaite is the seventh generation of his family to operate from his farm. He has a contract with Sainsbury’s and says that the contract has been honoured and that he is happy with the way he is being treated. That means that there will be a business for his son Richard, who is 22 years of age, to take over. Richard works with his dad at the moment.

[Heather Wheeler (South Derbyshire) (Con)]

I congratulate my hon. Friend on securing this important debate. It is a pleasure to serve under your chairmanship, Sir Roger. My hon. Friend is getting to an important question about contracts for our farmers. Sainsbury’s has been very good, as has Tesco, but the real issue is the pressure on the price per litre. Will he go on to talk about the big supermarkets’ contracts?

[Mr Evans]

Yes. It will not have gone unnoticed by my hon. Friend and others that Sainsbury’s took out a large advert in a number of newspapers indicating those supermarkets that are being fair and those that are not. I will refer to that later.

Edward Cowperthwaite’s farm is a bit further into the village. He milks a smaller herd than John Cowperthwaite. He came off his tractor to speak to me yesterday. He is not on a contract and has seen two successive cuts to his milk price, in January and February this year. He works seven days a week and cannot afford to employ anyone. He has some sheep to keep his income up, and his wife works as a teacher, so thankfully he can make a go of it, but he has five youngsters and is not sure that any of them will want to enter farming while it is in this particular predicament.

At the top of the village is William Slinger’s farm, which he can trace back to 1603. He has a larger herd of cows, plus sheep, and is the founding director of Bowland Fresh, which about 30 local farms feed into. Both Booths and Asda take his milk, and he works hard to ensure the scheme works for the participating farmers. I want to thank Booths in particular, as the founding buyer for Bowland Fresh, for the considerate way that it has treated local suppliers. Edwin Booth lives locally and knows that the value of milk is not simply the plastic bottle people take away from his stores. I also thank Asda for its support for Bowland Fresh.

Whether the cause is Russian sanctions, the reduced Chinese market or simply an over-supply in the market after a very good year last year, the fact is that the price for milk on some farms is now way below the cost of production. A local dairy farmer from Samlesbury, Graham Young, who is also a member of the National Farmers Union north-west dairy board, told me that many farmers joined the European milk co-operative, Arla, and are getting under 25p a litre; some farmers are in the First Milk co-operative and are getting around 20p a litre. Although the longer term is looking good, those prices are not sustainable in the short term, and farmers have to survive the short term first.

The current situation has energised a number of MPs who, like me, think something must be done. Those include my hon. Friend the Member for Thirsk and Malton (Miss McIntosh), who is here today. She is Chair of the Environment, Food and Rural Affairs Committee, which produced an excellent report last month making a number of important recommendations. My hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart), who is also here, had an Adjournment debate in November on this issue; sadly, the plight of the industry has worsened since then. A number of Members have put down or signed early-day motions and raised issues relating to dairying on the Floor of the House, including my hon. Friend the Member for Stone.