Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 5th May 2016 Commons Chamber

[George Eustice]

It is not the case that we did not support the school milk scheme. The European school milk scheme is very small; it is worth around £4 million a year. It is dwarfed by our domestic schemes. The one funded by the Department for Education and the Department of Health, for infants, is around £60 million a year. The issue that we had with the school milk scheme was the bureaucracy and administration that the European Commission was trying to add to it. We were keen to pare that out, but we certainly supported the scheme; it is not true to say that we did not.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

In north Yorkshire, in the last 15 years, we have lost 50% of our dairy farmers, and 90% of those still in business are losing money, despite generous taxpayer subsidies. Does the Minister agree that now is the time for the supermarkets to start paying British farmers a fair price for British milk?

[George Eustice]

I understand the point that my hon. Friend makes, and as I say, these are very difficult times for farmers. People often lay the blame on supermarkets, but we have to recognise that at the root of the problem is the worldwide issue of low commodity prices. There are very low prices in New Zealand—far lower than we have here—and many people have been driven out of business there. This is a global challenge. Some of the supermarkets have stepped up to the plate and offered aligned contracts, and many of them are selling their milk at a loss; we should recognise that and give credit where credit is due. Of course, we are always trying to improve the position of farmers in the supply chain.