Dairy Industry

Richard Drax Excerpts
Wednesday 4th February 2015

(9 years, 3 months ago)

Westminster Hall
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Nigel Evans Portrait Mr Evans
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I do agree that the time for action is now. If we do not act now, it will be too late. The number of farms has dropped from 35,000 to fewer than 10,000, so this is clearly a crisis. I should congratulate my hon. Friend on being the founding member of the all-party group on dairy, which has focused on the industry’s plight.

To go back to a previous intervention, we know something is out of kilter when milk is sold at 89p for 4 pints. When I was in Ribble Valley last week, I saw 8 pints on offer for £2 in my local Co-op. Perrier sells for £1.04 a bottle—water is valued more than milk. That cannot be right.

I commend the Minister on his hard work and resolute efforts to look at fresh ways of supporting the industry. He meets industry representatives constantly; indeed, he met Thomas Binns, one of my dairy farmers in Cumbria, just yesterday. I have looked long and hard at a number of suggestions made by some of my farmers. I have also read around the issue in the Farmers Guardian, and I have read reports about the industry’s plight. I have produced a charter for the British dairy industry, which I hope the Government will get behind. It is a 12-point plan, although it may well be a 13-point plan after the intervention by my hon. Friend the Member for Stone. I have provided the Minister with a copy. The charter simply says:

“1. The Groceries Code Adjudicator to be given more powers to protect dairy farmers.

2. A strengthened Groceries Supply Code of Practice.

3. Supermarkets and wholesalers who pay less than the cost of production for milk should be named and shamed. They have Fairtrade coffee, chocolate and bananas, this should extend to Fairtrade UK milk and dairy processed products.

4. Farmers need to be given more assistance in accessing a variety of export markets.

5. Banks should provide support to dairy farmers during this challenging time for the industry.

6. HM Revenue & Customs should move to look at profits over a five year period to provide a more level rate of taxation.

7. The EU intervention price of 15 pence per litre needs to be urgently reviewed as it is no longer an accurate figure and is far too low.

8. Better and clearer origin of production labelling. British means produced and processed in the UK.

9. More stability on investment allowances for farmers.

10. Ensure that dairy farming is supported and championed by the Government. Dairy farms are the backbone of rural Britain and it must be sufficiently attractive for new generations of young farmers to enter the industry.

11. Look to encourage producer organisations within the industry to give better protection on product price.

12. Look to cushion the worst impacts of the volatility within the industry.”

Let me also add point 13, on the public procurement of UK milk.

Richard Drax Portrait Richard Drax (South Dorset) (Con)
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I congratulate my hon. Friend on his fantastic speech, which is very timely. May I add my concerns about over-production? With quota coming off this year, we hear that Ireland is likely dramatically to increase its production of liquid milk. That will flood across into the United Kingdom, and the consequences could be very serious. I would be interested to hear what the Minister has to say about that. Does my hon. Friend share my concerns about the future of milk production?

Nigel Evans Portrait Mr Evans
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That has certainly been heralded in a number of agricultural publications. Ireland, France, Germany and the Netherlands could all increase their production, and the price would drop even further. The threat is that we start importing more product into the UK, which will further and severely disadvantage British dairy farming. I hope the Minister will address that.