Food Prices and Food Poverty

Julian Sturdy Excerpts

Monday 23rd January 2012 Commons Chamber

[Laura Sandys (South Thanet) (Con)]

I must now declare an interest in the organisation called Ugly Food that I have established. I believe that it is open to all small producers to market their foods with new branding and a new logo.

Perhaps I am looking at these matters non-politically, and perhaps I am looking too far into the future, but I think that we have a real problem. We talk about cheap food, but we are not always going to be able to deliver cheap food. We will have been deluding our constituents by suggesting that it will be available in the longer term, unless someone comes up with the answers to climate change, increased calorific intake and population growth. If we are to be responsible and live in the real world, we must try to deliver a system in which the cost of feeding one’s family healthily and effectively does not go up in price, but that is fundamentally different from talking about cheap food.

The food system in this country has been distorted by the very cheapness of the products. Food here is cheaper than in any other country in Europe and, as a result, we have seen a much steeper price hike in recent years than the rest of Europe. That price hike has been compounded by two fundamental aspects of our food chain. We import much more than any other OECD country, and we eat much more processed food, which is highly energy intensive and labour intensive. A further anomaly is that, although this country’s supply chain is supremely efficient, it is not very resilient. As a result, we face greater price fluctuations and volatility when shocks to the system occur.

[Julian Sturdy (York Outer) (Con)]

I draw Members’ attention to my declaration of interest. My hon. Friend is right to say that food prices will continue to rise, and that that will be a problem. Is it not the case, however, that one way of tackling that would be to tackle food waste? Should we not also examine the new technology that could really move agriculture forward, not only in the UK but around the world?

[Laura Sandys]

I totally agree with my hon. Friend. It is pretty frightening that wheat yields in this country have not increased at all over the past 20 years. Also, because food has been so cheap in this country, we have not valued it. As a result, there is a huge amount of waste in the system.

It is interesting that the Opposition have chosen this subject for debate, because you left this country very vulnerable—

--- Later in debate ---

[Mr Nuttall]

My hon. Friend makes an excellent point. I submit that the impact of EU regulation is of far greater concern to farmers than their relationship with our nation’s supermarkets. Despite all the tinkering with the CAP, it still takes up more than 40% of the entire EU budget. British consumers would be far better off if we were free from the tentacles of the European Union and its CAP altogether.

Secondly, I do not think that we should interfere with the operation of our retailers. The fierce competition between high street food retailers has led to the sustained availability of a huge choice of foods that previous generations could only have dreamt of. As Asda battles Tesco, which competes with Sainsbury’s, which fights with Morrisons, which battles with Waitrose, Lidl, Booths, Aldi and Marks & Spencer, all competing with each other and with smaller chains and independents, there is surely no doubt that all this competition has served to drive down prices for the benefit of all consumers.

[Julian Sturdy]

Is it not true that driving down some of those costs has been detrimental to dairy farmers? Milk prices have fallen, and the fact that supermarkets sell milk as a loss leader is having a real impact on local dairy farmers.

[Mr Nuttall]

Dairy farmers can band together and form co-operatives in order to strengthen their negotiating position, as they have done. The market solution to the problem is to have higher prices. I am conscious of the fact that many Members wish to contribute to the debate, so will leave my remarks there.