Food Prices and Food Poverty

Debate between Julian Sturdy and David Nuttall

Monday 23rd January 2012 Commons Chamber

[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.