Dairy Industry

Debate between Huw Irranca-Davies and Andrew Griffiths

Thursday 13th September 2012 Westminster Hall

[Huw Irranca-Davies]

Perhaps the Administration Committee will look at the rules and allow us to bring in good UK products. I thank, too, the Select Committee for its recent and long-standing work. The detail and forensic analysis that it has applied to the subject will be of help to us and to the Minister. I welcome the new Minister to his position and tell him that we want to work with the Government to strengthen future policies. I hope that he will be open to some of our suggestions.

This is a welcome opportunity to debate the industry, especially after our dairy farming sector—I apologise to hon. Members for saying this in the Chamber—took on a slightly French flavour. We had protests, blockades and threats of direct action that were not carried through. The hon. Member for Brecon and Radnorshire (Roger Williams) said that the former Agriculture Minister fronted up a very heated session in the Methodist hall, which he did. He did what a Farming Minister should do, which is to front up the debate and earn his salary. It was an immensely difficult and confrontational meeting, but he earned his stripes. Although not everything he said was welcome, he really earned his salary that day and, as a Minister, he did the right thing—he did not hide.

We now have a very good chance to examine not only what has been going wrong, but more importantly what can be done to resolve the situation. In fact, I returned this morning from a meeting with farmers just outside Corby. That is no coincidence; people will probably know that we have a tremendous Labour candidate there, Andy Sawford, who was with me today. We were out meeting people, but we discussed in detail some of the issues that arose from the dairy crisis and the long-term solutions that are needed for the future.

I have already welcomed the new Minister to his portfolio, but I also pay tribute to his predecessor, the right hon. Member for South East Cambridgeshire (Mr Paice). He and I did not agree on everything. If we had, not only would he be a Conservative but I would be a Conservative, or perhaps a Liberal Democrat—I am not sure. I regard him as a very decent man who wanted to do the right thing for agriculture. Reshuffles are a brutal affair, and his successor, the new Minister, will want to strive to avoid any dairy crisis in the future, as we all do, and we will try to work with him to prevent another crisis.

Let me put on the record some of Labour’s bottom lines. We want a fair deal for farmers, food manufacturers and retailers, but we should not forget consumers. We want a fair deal for them, too—a point made by the hon. Member for Thirsk and Malton (Miss McIntosh), the Chairman of the Environment, Food and Rural Affairs Committee, in her contribution to the debate. We want a competitive and equitable supply chain that delivers not only profitability all along that supply chain, but affordability for the shopper. That is not a lot to ask, although sometimes this summer it seemed like a huge task to achieve. To that end, we welcome wholeheartedly the dairy coalition’s 10-point plan. We want the consultation on the EU dairy package to be carried out this autumn without fail, so that producer organisations can gain formal recognition.

It is perhaps not surprising for a party that was born from one parent within the co-operative movement that Labour wants to see more producer-based organisation within the dairy sector. However, that is not simply about strengthening bargaining power—bargaining power has been referred to repeatedly today—or seeing some new imbalance that might be to the detriment of the consumer. It is vital not only that farmers can balance power in the supply chain, which is not in equilibrium, but that dairy producers come together, transfer right up the value chain by investing in food production, as well as food processing, and develop higher-value products for both the domestic and export markets. We should not forget the export market, although it has not had much attention today.

[Andrew Griffiths]

The hon. Gentleman speaks about the proud tradition of his party and its relationship with the co-operative movement. Will he today speak out and condemn the Co-op supermarket’s inability to pay a fair price to their farmers?

[Huw Irranca-Davies]

I do not know whether the hon. Gentleman is trying to make this debate party political; I am trying not to do so. Let me again put on record something that I have already said publicly and to the media repeatedly: I condemn all those retailers and milk processors that are squeezing the price down. I condemned them, and I have named them to shame them.

The retail sector and the milk processors have taken a heck of a kicking this summer, and they have taken a heck of a kicking today. The hon. Gentleman will have noted that I have already made the point—I am sure that the Minister will make the same one—that we do not want to turn this situation around completely, whereby the consumer loses out because we have strengthened another part of the supply chain and its bargaining power so much that the poor old shopper walks into shops and is fleeced for a different reason entirely. What we want is a fair and equitable supply chain. So, yes—in answer to the hon. Gentleman—I will speak out against anybody that is abusing the supply chain, because what we want is a healthy, thriving and open supply chain that is competitive but that has some form of co-operation, because it is in the interests of UK plc that we have a strong supply chain and not an imbalanced one, whereby somebody is badly hurt. At present, the farmers and producers are being hurt very badly.