Farming Regulation Task Force

Lord Morris of Aberavon Excerpts

Wednesday 11th July 2012 Lords Chamber

[Lord Taylor of Holbeach]

The noble Baroness is quite right to remind us of our responsibility in undertaking this project. I said in my opening response that we need to work with thoroughness to ensure that situations such as she describes do not happen again.

[Lord Morris of Aberavon]

My Lords, what advice will the Minister give to the thousands of dairy producers who are leaving the industry? When I was a young man working for the farmers there were 6,000 milk producers in Carmarthenshire alone. Now there are probably fewer than 3,000 in the whole of Wales. He talks about strengthening the industry. How will the industry be strengthened, as opposed to the buyers?

[Lord Taylor of Holbeach]

The fundamental problem is currently that the productive capacity of the dairy herd has greatly increased. Until the industry is capable of expanding its market beyond the liquid milk market, which in itself is fairly inelastic, to use an economic term, we will not actually solve this problem. I hope that the answers that I have given today have given the House an indication of my view that the solution lies in creating new markets for processed milk and the infrastructure to provide that.