Fair Dealing Obligations (Milk) Regulations 2024

Debate between Lord Grantchester and Lord Curry of Kirkharle

Monday 25th March 2024 Lords Chamber

[Lord Curry of Kirkharle (CB)]

My Lords, I too warmly welcome these regulations. It is interesting and rather ironic that the farmers are protesting in Parliament Square while we are addressing this topic. When I saw the tractors outside, I felt rather envious. I wished I had brought my own tractor from Northumberland, although it might have taken most of the weekend.

This has been an issue for a very long time. I have been involved in trying to encourage better relationships within the dairy and other sectors for at least 25, if not 30, years. This is an important development. I welcomed it when the then Agriculture Bill came into the House. It was a big step forward for the Government to bring this in as part of that Bill.

I have two questions for the Minister. First, did the Government seriously consider whether to extend the existing GSCOP and Groceries Code Adjudicator to include the elements contained in that Bill? There have been at least two reviews of the scope of GSCOP during the years. Many of us have been keen that that scope should be extended down the supply chain to provide greater protection and support for primary producers.

Secondly, if the answer to that is, “Yes, we have considered it but have decided to go it alone and establish our own adjudicator within the dairy sector”, are the Government likely to extend that scope to other sectors? Many of the issues dogging the dairy sector dog other sectors too. Relationships within supply chains are nothing like as good as they should be and, in many cases, degenerate into confrontational relationships. In my view, it is important to look at other sectors. When the adjudicator is appointed, it should be made clear that—if it is government policy—the remit is likely to be extended to include other sectors.

[Lord Grantchester (Lab)]

My Lords, I thank the Minister for his explanation to the House today. This is an incredibly important measure to help resolve deep-seated problems at the producer end of the milk supply chain.

I declare my interests and experiences from being involved in a supply chain, as I have owned a dairy farm and received payments for over 40 years. I supplied milk in the beginning to Milk Marque and subsequently to several other processors, as well as chairing a producer group and the milk co-op Dairy Farmers of Britain. I was also a shadow Agriculture Minister in the Lords during the passage of what became the Agriculture Act, opposite the noble Lord, Lord Gardiner. I thank him for committing Section 29 into the Act.

The milk industry is extremely competitive. It has evolved with the rise and consolidation of supermarkets. Their dominance in the grocery trade has migrated milk away from doorstep deliveries. The consolidation of the top, supermarket end of the supply chain has driven consolidation in the processing sector. I liken it to the challenge of playing musical chairs, whereby the number of processors is successively reduced by the expanding supermarkets, which channel the supply chain towards expanding processors. An example of this business is the Co-op, which, at that time, expanded by acquisition. It reduced its milk suppliers from two to one, whereby the Co-op’s amalgamation costs of £6 million were, in effect, paid for by the dairy supply chain competing to be the one supplier of milk, without much regard to fair dealing.

By contrast, the service sector can be equally unstable and volatile, supplying milk to outlets such as Starbucks and others. In the other place, the debate mentioned the possibility of waste. I agree with the Minister in the other place, Mark Spencer, that there is virtually no waste in the milk chain. The recent example of so-called waste, when Covid shut down such outlets, resulted from those dairy suppliers being suddenly told that there would be no collection of their milk for the foreseeable future, and they faced the problem of safe dispersal immediately, with full tanks and cows needing to be milked again. I pay tribute to Dairy UK and Defra, led at that time by the Secretary of State George Eustice, for rectifying the situation.

Environment Bill

Debate between Lord Grantchester and Lord Curry of Kirkharle

Report stage
Wednesday 8th September 2021 Lords Chamber

[Lord Curry of Kirkharle (CB)]

My Lords, I declare my interest as chair of Cawood Scientific, which provides analysis of soil and other agricultural products. I apologise that I was unable to be present on Monday, but I was very grateful to the noble Baroness, Lady Bennett of Manor Castle, for quoting me in her speech. Let me, without duplication, endorse what has been said already and perhaps expand on my comments repeated by the noble Baroness, Lady Bennett, on Monday.

The Republic of Ireland has decided to carry out an extensive survey of its soil. It is spending €10 billion this year and is expected to spend a similar amount over the next three years to have a comprehensive understanding of the quality of the soil throughout the entire Irish Republic. Northern Ireland is considering a similar approach, so the whole island of Ireland will have, I hope, a soil-mapping exercise that will provide it with all the data it needs to make informed decisions to improve the quality of its soil.

I attended the Rothamsted Research centre a few years ago and met the soil scientists. The thing that stuck in my mind was when a scientist said, “Once soil is completely degraded, it is impossible to recreate soil.” I thought that was a tribute to what was concluded with perfection in the Garden of Eden. Once we have degraded our soil completely, we have lost it for ever. So, why would we in England not wish to take a leading global position and understand the quality of our soil and have a strategy to address that quality? We need to do this. We have a vehicle to do it through the ELMS, when testing soil will be part of the encouragement that farmers will be given. It would be a simple matter to extend the responsibility in terms of quantifying and qualifying what soil testing actually means and to establish a standard nationally that would give us the same data and information that the Republic of Ireland will have. Why would we not do that?

[Lord Grantchester (Lab)]

If noble Lords have noticed my silence at earlier stages of the Environment Bill, it is because my noble friend Lady Jones has been very ably joined on the Front Bench by my noble friends Lady Hayman and Lord Khan. It is now a much better team, and I congratulate them. But I too had noticed the omission of soil and improvement targets. I declare my interest as a working farmer and wholeheartedly support Amendment 2, tabled by the noble Baroness, Lady Bennett. Her points were very well made on Monday night, and I am glad the House agreed.

The Soil Association was aptly named by Lady Eve Balfour following the Dust Bowl events in America in the 1930s. Amendment 18 complements Amendment 2 in proposing a soil management strategy in rolling 10-year cycles. This is very important, and soil is, to some extent, recognised within Defra, in that farmers need to comply with regulations concerning NVZs—nitrate vulnerable zones—concerning the application of manures, fertilisers and water run-off.

The importance of soil is also recognised by and included in the advice to government by the Climate Change Committee, and I thank the noble Lord, Lord Deben, for his powerful words in drawing attention to this. Not enough attention is paid by Defra, as soil compaction is becoming ever more problematic, as farmers’ machinery becomes bigger and more powerful to cover the necessary acreage needed to remain profitable while catching favourable weather conditions.

I thank Professor Karl Ritz of Nottingham University, introduced to me by the noble Baroness, Lady Boycott, for sending me his paper, “The Groundswell 5 Principles and Soil Sense”, which wisely recognises:

“Regenerative agriculture wisely puts soil health at the heart of its concepts and practices.”


It underlines the five principles as: diversity; protect soil surface; maintain living roots; minimise soil disturbance; and, finally, livestock integration.

This allows me to ask the noble Earl why, under proposed new subsection (4)(d) in his amendment, he highlights only

“the sustainable management of soil on Grade 1 and Grade 2 agricultural land”.

while putting in brackets “other soils where necessary.” The noble Earl will know that much of the livestock grazing on the west side of Britain is categorised as grade 3, where soil structure and stockholding capacity are also important as primary business assets, providing nutritious food to the nation. All soils should be included, as they support all terrestrial habitats, store and filter water, sequestrate carbon and nutrients, and even inform us of the past.

Peatlands and uplands are also vital and part of Defra’s strategy for flood management. The Climate Change Committee recommends the full restoration of peatlands by 2045. Could the Minister write to your Lordships, as time is short, updating the House on the department’s peatland strategy and say when the banning of horticultural peat is scheduled to take place and whether this could be brought forward? There may also be drafting issues with this amendment that the Minister may take exception to.

I stress that soil management must be included as an element under ELMS, the new support payment system for agriculture. Will the Minister also undertake to write to me with the latest information on trials being conducted on the introduction of the ELMS, which are still needed by agriculture to balance the progressive withdrawal of area-based payments, pointing out where soil management will be undertaken within the new ELMS?

Nature does not like a bare soil and tries to cover up as soon as possible. Will the Minister commit to covering this important element of our environment under targets supplementing others in this Bill?