Oral Answers to Questions

Debate between Heather Wheeler and David Heath

Thursday 24th January 2013 Commons Chamber

[Heather Wheeler (South Derbyshire) (Con)]

9. What steps he is taking to assist the dairy farming sector.

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

I am always happy to impart information, Mr Speaker; that is what Question Time is for.

I am encouraging early progress to implement the industry’s excellent code of practice. I am consulting on ways dairy farmers can strengthen their position in the supply chain through producer organisations, and £5 million of new funding has been made available to boost collaboration and growth under the rural development programme for England. I am encouraging the industry to explore new markets at home and abroad to help develop its long-term potential.

[Heather Wheeler]

I thank the Minister for his reply. I was disappointed to see Arla Milk Link’s recent milk price reduction of 0.23p per litre. Farmers were given just one day’s notice of the cut, but they would have to give between 12 and 15 months’ notice before being able to leave their contract. That is against the commitments made in the voluntary code of practice and runs counter to the good progress made in the past few months by other processors, such as Dairy Crest, which is based in my constituency of South Derbyshire. For the voluntary code to work, we must ensure that there is a level playing field—

--- Later in debate ---

[Heather Wheeler]

How does the Minister intend to ensure fairness for both my dairy farmers and processors?

[Mr Heath]

I understand that the Arla price reduction was triggered by its agreed price formula, rather than made simply at its discretion, but I appreciate the concerns about the timing of the announcement and compliance with the industry code. That is why at last week’s Dairy UK board meeting I pressed for all processors to get on with implementing the industry code in their farmers’ contracts. I reminded them that if the code fails to deliver the desired outcomes over time, I will consider legislating.