Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 24th November 2016 Commons Chamber

[George Eustice]

My hon. Friend has made a good point. These have been two very difficult years for the dairy industry. However, I think we should give credit where it is due, and acknowledge that many of the major supermarkets offer their farmers aligned contracts that are linked to the cost of production. Those farmers have continued to obtain good prices over the last two years. Nevertheless, they are a minority, so we are investigating ways of strengthening the negotiating position of farmers in the supply chain, such as reviewing the operation of the Groceries Code Adjudicator, strengthening the voluntary dairy supply chain code, and strengthening recognition of producer organisations.

[Nic Dakin (Scunthorpe) (Lab)]

What assessment has the Department made of the importance of the provision of school and nursery milk in supporting dairy farmers?

[George Eustice]

As the hon. Gentleman will know, there is a small European Union scheme to support school milk, which is worth a few million pounds, but it is dwarfed by the much larger, much more important nursery milk scheme run by the Department for Education and the Department of Health, which is worth some £60 million a year.