Support for British Farming

Jim Shannon Excerpts

Wednesday 23rd November 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for East Devon (Simon Jupp) for setting the scene so well. Farming and agriculture are at the heart of both our areas. I declare an interest as a farmer. I am also a member of the Ulster Farmers Union, and have been for many years; we are in regular contact. My main reason for joining, if I am quite truthful, is that the insurance premiums were excellent. I have been a customer for over 30 years as a result.

I am in full support of the farming industry; it is crucial for the UK and an integral part of our economy. It is great to be here to exchange ideas, and also to hear the hon. Member for South Dorset (Richard Drax) speaking. I happen to disagree with him on one point: I think that all foxes—every one of them—should be controlled, but that is just my opinion. I will put that on the record. All foxes should be controlled. There should not be any foxes, but that is by the by. It is great to listen to other Members, and to see the Minister in his place; he has landed in the right job, and we are all very pleased to him there.

Agriculture plays a pivotal role in Northern Ireland; it brings an estimated income of £501 million as of 2021 —an increase of some 8.3% from 2020. Agriculture thrives in my constituency of Strangford; we have numerous companies that are bywords in the constituency. Willowbrook Foods, Lakeland Dairies, Mash Direct and Rich Sauces have a combined workforce of probably just over 3,000. I have mentioned before that Lakeland Dairies has four factories in Northern Ireland and five in the Republic; that highlights the importance of smooth and frictionless trade. There are countless dairy farmers across Northern Ireland who deal with Lakeland Dairies, and that has proven to be an incredible success in the dairy farming trade.

Employment is a major factor in the agrifood sector, hence the importance of securing funding and support from elected representatives. It does not matter if someone does not come from a constituency that is rich in farming; the supplies from farmers to other local businesses are equally important.

Furthermore, the sector employs some 70,000 people in Northern Ireland, so we cannot take away from the importance of those jobs for us in Northern Ireland. We export some 80% of our goods, so we depend on exports to survive. The Department for the Economy has concluded through economic modelling that there could be up to 10,000 fewer jobs, depending on the nature of the relationships established with the EU. I have to put this on the record, and the Minister knows it is coming: the Northern Ireland protocol disadvantages us in Northern Ireland. I know the Minister accepts that issue, but it is important for us that the Northern Ireland Protocol Bill be agreed to. When it left the House of Commons for the House of Lords, it was where we wanted it. We hope it will return in a similar fashion.

[Carla Lockhart (Upper Bann) (DUP)]

My hon. Friend makes a powerful point on the protocol. We have heard today of the challenges facing famers. Would he agree that in Northern Ireland there are additional challenges because of the protocol? Look at the seed potato issue. We cannot get seed potato from Scotland to Northern Ireland. Some 50% of veterinary medicines will not be available to Northern Ireland in January after the grace period. Does he agree that the protocol needs to go? Great Britain’s farmers would not accept it, so Northern Ireland farmers should not have to, either.

[Jim Shannon]

I totally agree. My hon. Friend is our party’s agriculture spokesperson, so I am pleased to have that contribution made. Land use in Northern Ireland is now dominated by improved grassland management for dairy, beef and sheep production; there are also small pockets of cereals, mostly in County Down. I am privileged to have a farm that is agriculturally sound, and the land is very productive, as it is for many farmers across Mid Down and Northern Ireland. I have highlighted the importance of community farming numerous times, and nominated a constituent of mine, Emily McGowan, for the National Farmers Union community hero award. She is a young girl with a deep interest in farming, and I hope she does well.

Community and local farming are the backbone of business in Northern Ireland and the UK. Mash Direct supplies good, healthy, hearty food to numerous large retailers across the United Kingdom at an affordable price. ASDA and local Spars in Northern Ireland are some of their major retailers. That business started out of a kitchen 15 or 20 years ago. Mash Direct has been looking at becoming more sustainable and protecting the environment by installing solar panels at its family farm. It looks forward and has a vision for the future. This is another milestone in how farming can become carbon neutral. The farming industry is crucial to the UK economy, and we must support it. As stated, farming plays a major role in our achieving our environmental targets. It provides tens of thousands of jobs across the United Kingdom, and supports businesses with fresh and decent food for our constituents.

Finally, farmers face increasing stock prices on items such as fertiliser, due to inflation and Putin’s invasion of Russia, yet they still work hard and do their absolute best to provide for us. We should be incredibly proud of our farmers. I fully support them, especially those in my constituency, who I know work tirelessly to support their local community. If they can support us, we must do the same back.

--- Later in debate ---

[Chris Loder (West Dorset) (Con)]

It is a pleasure to speak in this debate. I pay tribute to my hon. Friend the Member for East Devon (Simon Jupp), who is almost my constituency neighbour, and congratulate him on securing this important debate. I declare my interest as a tenant beef farmer’s son in my home constituency.

Although I could talk a lot about farming across the board, particularly beef and sheep farming, I want to focus my remarks on egg production and the effects we are starting to see. Some people say the situation has been caused by avian flu, but I would like to share some other aspects of the debate that may help to inform the discussion. The egg industry has been going through a period of turbulence for some time. In my opinion, it is because the supermarkets control the supply chain, totally dominate the market and force producers to accept a price at which they cannot afford to produce. I am afraid it highlights the fact that the Groceries Code Adjudicator, which I spoke so strongly in favour of in my maiden speech in February 2020, is proving to be totally ineffective.

Most of my local farmers in West Dorset tell me they do not want to receive Government subsidies, but they have to. Why do they have to? More often than not, they are forced into that position because the Groceries Code Adjudicator is not doing its job and is allowing supermarkets to dominate the field in such a way that farmers cannot continue to provide the goods that we all need to consume. In effect, in my opinion the Government are ultimately subsidising supermarket profits. That has to stop.

We all know that egg production costs have risen. Rising energy costs, the war in Ukraine and inflation have clearly all had an effect on that. But we cannot continue in a situation where large supermarkets’ strong yield-management policies are forcing this to occur. It is not new. Only a few days ago, the British Retail Consortium confirmed that

“some UK supermarkets are putting limits on egg purchases due to shortages largely linked”

to the avian influenza pandemic. Well, I do not agree with that. It is wrong. I think supermarkets are hiding behind that explanation a total failure in their yield-management strategies of probably many months, if not longer.

In West Dorset, a number of egg producers have told me that it is now so difficult for them to make money. Let me to put that into context: supermarkets broadly have raised the price of a dozen eggs by 50p over the past six months. The British Free Range Egg Producers Association says that farmers and producers are receiving just 18p of that, in the light of all the additional production costs they are having to bear. They cannot therefore do things like invest in pullets—new young stock—to ensure the future. This has basically resulted in a gradual 13% reduction in egg production over the past year alone. That is not solely because of avian influenza.

[Jim Shannon]

I have a number of egg producers in my constituency as well. If they sell their eggs locally to smaller shops, they can get a good price—for instance, £1 has been increased to £1.89. That is an increase that smaller shops have made, but the larger supermarkets are hellbent on screwing the producers to such an extent that they will no longer be in business. It is the big boys that need to be taken on.

[Chris Loder]

I totally agree with the hon. Gentleman’s remarks, which concur with my thoughts. I am afraid this is the beginning of a ticking time bomb. If ever there was a time that this House had to urge the Government to give the Groceries Code Adjudicator the teeth it needs to sort this mess out, it is now. If we think there is difficulty in the market today, I can assure this Chamber that in less than 12 months’ time we will not be in a situation where we have a reduction in eggs available for sale to consumers—we will be lucky if we have any eggs on the shelves at all.