UK Dairy Sector

Rishi Sunak Excerpts

Wednesday 20th April 2016 Westminster Hall

[Rishi Sunak (Richmond (Yorks)) (Con)]

I thank the hon. Member for Ceredigion (Mr Williams) for obtaining the debate.

I recently spoke with an 80-year-old dairy farmer, in my North Yorkshire constituency, who told me that in a lifetime of dairy farming he had never seen times as bad. I believe that there are five key steps that need to be taken by Government, industry and consumer to bring some relief to him and others and safeguard the future of dairy farming in the UK. First, we need buyers to give farmers a fair deal. I commend retailer initiatives from Tesco, Sainsbury’s and others, which ensure that farmers receive a fair cost-of-production price for their milk, but if the dairy sector is to be sustainable, retailers need to expand that good work on liquid milk to other dairy products, and, indeed, more milk buyers need to follow the lead of the large retailers. That process should, of course, be overseen by a robust Groceries Code Adjudicator with additional powers to investigate downstream supply chains and indirect suppliers.

Secondly, we must make and buy more British. It might seem that there are few things more British than an honest slice of Cheddar, yet almost half the cheddar consumed in the UK today is imported from overseas. We must invest more in processing technology to ensure we add value to British milk by turning more of it into British butter, yoghurt and cheese, rather than importing. Alongside that, we must have better food labelling so that large retailers and caterers clearly show consumers how much of their dairy products is British.

Thirdly, the industry needs to create more dairy producer organisations. Groups of farmers banding together to negotiate a better sale price for their milk and a lower purchase price for their feed, and to share machinery, are commonplace across Europe. In the UK we currently have only one such producer organisation. In Germany, there are 143. If farmers are to balance out the power of big processers and retailers, that must change.

Fourthly, we need to develop a working futures market. As New Zealand and America show, futures can be a vital tool for providing price stability in a volatile world. It is crucial, therefore, that the Government continue their efforts to ensure that the relevant benchmarking data are available, which will help British dairy futures to become a reality.

Finally, Government at all levels must buy British. I know that the national Government are working hard to purchase British dairy products, but at a regional level we can do more. We must push local government, the military, hospitals and schools to do their part as well.

In conclusion, without its dairy farmers, the lush fields of the Yorkshire dales in my constituency would soon turn to scrub and its dry stone walls would go unrepaired. Only if the Government, farmers and consumers work together will we preserve our dairy industry and, with it, our rural communities and beautiful countryside for generations to come.

[Joan Ryan (in the Chair)]

With the co-operation of the Front Benchers, I have time for a couple more speakers. If everyone is to get in, they will have to speak for no more than two minutes. I leave it to their co-operation.