Thursday 31st March 2022

(2 years, 3 months ago)

Westminster Hall
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Neil Parish Portrait Neil Parish (Tiverton and Honiton) (Con)
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It is a great pleasure to serve under your chairmanship, Mr Hollobone. I say to the hon. Member for Edinburgh North and Leith (Deidre Brock) that it is a great thing that she has secured today’s debate on food security. Like her and many others in the House, I have talked a lot about food security, which is now more necessary than ever. I, like her, want to talk a little about what is happening in Ukraine and about global food security.

The Russian invasion of Ukraine has put Ukrainian agriculture under threat and issues with food security are being inflicted on the Ukrainian people, who are also dealing with a murderous invading force. Ukrainian farm workers have been deployed to fight on the frontline; infrastructure, such as roads and bridges, has been damaged, making it hard for goods to be transported across the country; and there are fuel shortages, as usually Ukraine gets 70% of its petrol and diesel from Russia and Belarus.

There is also a risk that the conflict may disrupt or stop the spring planting season, which is due to start now. There is shrapnel in the field, which will cause problems for farm machinery, and President Zelensky himself recently said that Russian troops are mining fields in Ukraine, blowing up agricultural machinery and destroying fuel reserves needed for sowing, which is absolutely dreadful. The President has said that Ukraine has access to around one year’s supply of food. That creates problems for food security beyond that time period and has a knock-on effect on global food security, because Ukraine needs to stockpile what it would normally export.

Ukraine produces a sixth of the world’s corn exports, 20% of global maize, 50% of global sunflower oil and 12% of the world’s wheat exports. The Black sea port in the south of Ukraine has now been completely shut down, taking about 12% of global wheat out of the market. Around 400 million people across north Africa and the middle east rely on wheat from Ukraine.

Kirsten Oswald Portrait Kirsten Oswald (East Renfrewshire) (SNP)
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The hon. Gentleman is making an incredibly important point and what he is setting out is deeply concerning. Hunger already kills more people than HIV/AIDS, malaria and tuberculosis combined, even before we got into the current situation. Does he agree that that points towards a need for urgent action?

Neil Parish Portrait Neil Parish
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I thank the hon. Lady for her intervention. I will go on to make the case that in order to ensure global food security and food security in this country, it is essential for us to produce more food, so that the gap left by Ukraine being unable to export to Africa and other countries can be filled by others and ourselves, if possible. That really is an issue.

Around 400 million people across north Africa and the middle east rely on wheat from Ukraine. Countries such as Egypt, Algeria, Tunisia and Libya import over 50% of the wheat their people eat every year, and 75% of Lebanon’s wheat comes from Ukraine. These countries are having to take steps to try to produce more wheat at home in difficult conditions, or to find new sources from other countries. In the past 10 days, several countries have introduced restrictions on the export of grain and vegetable oils, including Lebanon, Egypt, Hungary, Serbia, Moldova, Algeria, Turkey and Indonesia.

With millions of people already living in poverty around the world, we could soon face a great humanitarian crisis. The African Development Bank says it is planning to raise $1 billion to boost wheat production in Africa alone and avert potential food shortages. It is going to fund new technologies to try to help African countries to grow cereals, which is normally difficult in those conditions. I hope the Government do what they can to support those efforts.

Fertiliser costs are rising. We all know that the situation in Ukraine is also having an impact on food security in this country. Agriculture relies on specific imports to produce food, including fuel, fertiliser and feed. The cost of those imports varies each year, and farmers are very much at the mercy of the market when it comes to the prices of those imports. We have seen a perfect storm, with all of these spiking at the same time due to global events; when profit margins are already low, big price rises can practically put farmers out of business. The prices of feed and fertiliser are particularly volatile, and represent farmers’ most significant expenses.

The situation in Ukraine has disrupted supplies of potash—a key ingredient in fertiliser and mass produced in Russia and Belarus. That, combined with rising gas prices, is pushing up the cost of fertiliser, with wholesale gas prices up 500% from a year ago and 40% since the invasion of Ukraine. Farmers may face some very difficult decisions about how much fertiliser they use, because £1,000 a tonne—a jump of £245 from a year ago—is not affordable. Those prices cannot be absorbed by farmers, and if we are going to produce more food in this country, the basic fact is that we need to use enough fertiliser.

I welcome DEFRA’s announcement this week that the Government will clarify how the Environment Agency will apply the farming rules for water to allow spreading of slurry in the autumn, and I congratulate the Minister for her work in that area—it is very good news, and long awaited. I also welcome that any changes to the use of urea will be delayed by a year, given the crisis we are in. Over the long term, there is scope for moving towards more organic fertilisers. We can look at other forms of fertiliser, such as using dry leachate from biodigestion plants, but all of this is coming, and we need to deal with ammonium nitrate now. I welcome the decision to put an extra £20 million into the farming innovation programme to come up with new solutions.

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Victoria Prentis Portrait The Minister for Farming, Fisheries and Food (Victoria Prentis)
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It is a great pleasure to serve under your chairmanship, Mr Hollobone, and to attend this important debate. There are familiar faces in the Chamber and, as always, it is good to see them. Some important points have been made from across the House. I thank the hon. Member for Edinburgh North and Leith (Deidre Brock), as others have, for securing the debate. It is important that the debate is part of a wider, general and national conversation about food and food security—hon. Members know that nothing is more important to me or the Department. If I do not answer every point—it has been a very wide-ranging debate—Members should get in touch with me, or come and chat, at any point. The issues raised today are difficult and significant, and often there are no simple answers.

I know that many of us felt that war in Ukraine was coming, but I do not think many of us were prepared for the actuality or the severity of what is happening on the ground in Ukraine today. The last month has been truly horrific to witness, and we can only say how very sorry we are and how much the Ukrainian people are in our thoughts. The Government have sent £220 million of humanitarian aid, but we should all be aware that getting that aid to the people in those cellars in Mariupol is not automatic; it is very dangerous and difficult. We must continue to work globally with other nations to facilitate that where we can.

I agree with the points that many Members have made about the situation with planting in Ukraine. I was fortunate to meet the Ukrainian ambassador a week ago, and he spoke to me and the Secretary of State about direct interventions to help with the planting season this year, and we are doing our best to facilitate that. As my hon. Friend the Member for Tiverton and Honiton (Neil Parish) said, the planting season starts in the next couple of weeks. The Ukrainians are a very brave people and they deserve our support.

It is also right that we lean into the difficulties that the war in Ukraine will cause for the global food supply. In some of the countries that have been mentioned there will be real shortages of food as a result of the war, given those countries’ reliance on imports from Ukraine. That is a significant concern for the Government. I assure Members across the House that we will very much play our part in the global response to those issues.

Neil Parish Portrait Neil Parish
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I know the Minister is passionate about getting enough food supplies. Are the Government really looking at the amount of food we produce? We are now not only feeding ourselves but feeding the world. We cannot feed the whole world, but if we do not import so much food then there is more food for others who can ill-afford to get it. Where are the fertiliser plants that the Opposition have asked for? I questioned the Prime Minister yesterday, and said that we should open them. If we get ammonium nitrate out there, we can produce more vegetables, beef, sheep, dairy and cereal. It has to be ammonium nitrate, because that is the only quick fix to get us where we need to be.

Victoria Prentis Portrait Victoria Prentis
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I will come to fertilisers in a moment. I hope that my hon. Friend has a useful and productive recess planting his crops—I am sure he will. Food is what farmers produce; it is our job. I should have drawn attention to my own farming interests at the beginning of this speech. It is right that we continue to support farmers—be in no doubt about that. The Government have committed to support farmers in the Budget year on year. I think that is very important.

As my hon. Friend the Member for Tiverton and Honiton knows, it is my view that food is uppermost in what farmers think about and do. The Government have two other goals—what the EU used to call pillars—bedded into our future farming policies: nature recovery, which I think the whole House agrees is important; and carbon capture. Several hon. Members have referenced that we are going to have to adapt to climate change. Those three factors are bedded into our future farming policies, which are very much about supporting farmers to produce efficiently and productively, and to make the food that we need.

Having said all that, we need to be careful about our tone. There are going to be real problems elsewhere in the world with food supply this year; we are very fortunate in this country in that our import dependency on that area in eastern Europe is low and that we have strong domestic production of food such as wheat, maize and rapeseed. Other nations depend much more heavily on Ukraine and the area around it for those products than we do. We have to be quite careful in the way we have this discussion. What the war does directly contribute to in this country is rising costs, notably energy costs, and wider supply chain disruption. We should not gloss over those facts.

We know that the wider disruption is having a real impact on the supply and the cost of feed and fertiliser. I was very glad to chair our first meeting this morning of the fertiliser group—it was a useful meeting, in which we focused very much on practical solutions. We agreed—my hon. Friend the Member for Tiverton and Honiton will be glad to know—that we do need to use fertiliser to produce our crop and we need to make sure that there is enough fertiliser for all sorts of farmers, including livestock farmers, who need to produce the forage crops for next winter and in order to bump the wheat up to milling wheat status. We agreed that we did have confidence in our supply and we will be putting out a statement later today agreed by those at the group this morning—the real experts in this field—that we have sufficient supply and, while there is a cost implication, farmers should not be frightened to buy or to use fertiliser this year.

I would never refer to my hon. Friend the Member for Tiverton and Honiton in the terms the Prime Minister used yesterday, as an “old muckspreader”—I believe he is quite happy to be referred to as a muckspreader, but not an old one. I thank him and my hon. Friend the Member for Buckingham (Greg Smith) for their remarks on the changes on urea in the farming rules for water statutory guidance, which I think are sensible and welcome, and on the supercharging of our efforts on new supplies of biofertilisers rather than chemical fertilisers. That is all welcome; none of it is a complete solution, and we should not pretend for one minute that it is, but it is all good work that needs to be done and I am glad that that is recognised.

On the role of supermarkets, in the last week or so I have met all the major supermarkets to understand the issues they face and to discuss with them what they can do to pass production costs to the primary producers.

On food poverty, we learned during the pandemic—we saw once again—that targeted interventions are the way forward here. From April, the Government are providing an additional £500 million to help households with the costs of essentials. That brings the total funding for that support to £1 billion, which is very welcome. Although only half of food insecurity is in households with children, it is worth referencing the £220 million in our holiday activities and food programme, which goes directly to children.

Neil Parish Portrait Neil Parish
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I know the Secretary of State has met with FareShare to discuss further funding. I hope that has been successful.

Victoria Prentis Portrait Victoria Prentis
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My hon. Friend has discussed that many times with me and the Secretary of State. On food waste, in which WRAP and FareShare have played such a big part, I would like to recommit the spending that DEFRA has given in the past. We have spent about £3 million on that work and it is really important.

I think we all agree that food poverty needs to be addressed. Where we differ is how we support farmers to do that. The Government are committed to phasing out area-based payments, whereby 50% of the payment has gone to 10% of farmers in the past, and the bottom 20% of claimants get 2% of the total budget.

I listened to what the hon. Member for Bristol East (Kerry McCarthy) said about pulse farmers. I agree that pulses, pigs, horticulture and poultry have all done badly out of subsidy regimes in the past, and we are keen to put that right. It has never been more critical that we stick with the agricultural transition, because we need to incentivise efficient and productive farming. The new schemes are all about that as well as embedding nature and climate change in the way we incentivise farmers. Food is at the very heart of what we do, and food security is of course a critical national priority. I thank all those who have taken part in this important debate.