Agriculture: Dairy Farmers

Lord Wigley Excerpts

Monday 22nd February 2016 Lords Chamber

[Lord Gardiner of Kimble]

My Lords, I should declare an interest in that I come from a long-standing dairy farming family. I therefore clearly have considerable sympathy with the plight of dairy farmers. The Groceries Code Adjudicator has no powers over prices. However, we are looking at a number of issues in relation to suppliers and processors to see whether there are ways in which we can make improvements. I am pleased that a number of supermarkets—I encourage other chains to do so—see that they have a responsibility to the domestic dairy industry.

[Lord Wigley (PC)]

My Lords, in declaring my interest as noted in the register, may I press the Minister on this issue? He is aware, is he not, that family dairy farms have their backs against the wall? The prices they are getting are not only less than the full price of production but less than the marginal price of production, and hundreds will be going out of business. Will the Government please take this seriously and do something about it?

[Lord Gardiner of Kimble]

My Lords, I assure the noble Lord that the Government are very concerned about this. Indeed, other Ministers and I have been discussing the matter only today. There are a number of things that government can and are doing. We want to promote more exports; we believe that the export of our dairy products is tremendously important, and more British cheese is going abroad. We think that the Middle East and China are very important markets, and we have trade counsellors in Beijing precisely to encourage exports. A lot is going on, but I am very mindful of what the noble Lord has said.