Intensive Dairy Farming

Roger Williams Excerpts

Tuesday 14th December 2010 Westminster Hall

[Stephen Phillips]

I was not aware of that, but it does not surprise me, given the state of the British dairy industry. That issue is at the heart of the debate. What do we want to see in future for the British dairy industry? I want to see existing producers paid a suitable price for their milk so that they can provide a decent living for their families and continue the tradition of farming that has gone on in this country for hundreds of years and that does not result in the environmental concerns associated with intensive dairy farming, which for the most part I set my face against.

This is not a situation that the Government can permit to continue. Given the pressures on small farmers up and down the country, it is unacceptable for the Government to say that it is all merely down to the planning process, leave it up to local authorities and allow smaller producers simply to be undercut by intensive dairy farms, which for many might be the last straw. If intensive dairy farms are to be allowed at all, I hope that the Minister will state that there will be action on price and labelling so that British consumers who wish to avoid purchasing milk from intensive dairy farms will have the opportunity to do so. If freedom of choice means anything, it certainly means that we should be able to do that.

[Roger Williams (Brecon and Radnorshire) (LD)]

I congratulate my hon. and learned Friend on how he is taking the debate forward. He has made the important point that there has been enormous price pressure on existing dairy farmers, but does he agree that one way to address the problem would be to have the so-called grocery ombudsman or regulator to ensure that a few large dairies cannot take advantage of many small producers?

[Stephen Phillips]

I agree with my hon. Friend. I believe that at the election all three main parties promised a farming ombudsman, and that the Minister intends to introduce one. Given the constituency that I come from, I hope that that will happen soon.

Be in no doubt: we need a farming ombudsman, and not just for dairy farmers. We all hear tales about how supermarkets in particular put pressure on farmers so that they can improve their bottom line. Consumers who purchase food at those supermarkets simply do not know about that; incidentally, I believe that they would be disgusted were they to know the full truth.

We need a farming ombudsman, and, if it is not out of order or inappropriate, perhaps the Minister would confirm that we will get one in due course, and that it will be soon. I agree with the comments of my hon. Friend the Member for Brecon and Radnorshire (Roger Williams).

--- Later in debate ---

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I join in congratulating my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) on securing this debate. Any discussion in this building about the plight of rural communities, in particular the agricultural aspects of it, is encouraging.

If I may, I would like to start with some of the economic context which my hon. and learned Friend mentioned, and quote some figures. I do this as a brother-in-law of a dairy farmer, the son of a dairy farmer, and the husband of a dairy farmer’s daughter—hon. Members will get a general idea of my position. At present—admittedly, this is only one set of figures—farmers are producing milk at a loss of between 1p and 2.5p per litre. The dairies sell their products for a profit in the region of 4p to 5p, yet certain supermarkets—I shall try to be careful about naming them—are selling at a profit of 22p a litre. That is the economic context which my hon. and learned Friend mentioned. I absolutely agree with him that the buying public, if they were aware of the muscle that is applied by supermarkets, would greet that knowledge with a certain amount of disdain and, indeed, disgust.

Let me take that a stage further. One supermarket prides itself on paying its suppliers a rather higher price—about 28p a litre. If the truth was known that only 800 suppliers—some 10%—qualify for that price, the public would raise an eyebrow. In addition, the supermarket in question does not fork out that extra amount itself. Instead, it has insisted on the middle man at the dairy negotiating a more stringent price with the supplier. What did the dairy do? The dairy froze its payments to farmers who are not providing that supermarket, which meant consequentially that their price was reduced. Although that supermarket is obtaining good public relations for distributing press releases talking about fair trade for farmers, it has not been impacted on at all. Yet all those farmers who are not lucky enough to provide that supermarket chain have been penalised. That is the actual, factual economic context behind this important debate. That is why—there is no other reason at all—we are looking at the prospect of super- dairies, if that is the right expression.

I want to inject a degree of measured middle ground, if I may. It is obvious that, increasingly, farmers recognise that scale is the only way that they can make money. I am not talking about making large sums, but about making sufficient money not to go bust and to be able to invest in new technology, which is not just desirable for milk production, but is required by law in the current economic and legal climate.

I represent an area of west Wales in Carmarthenshire, in probably one of the largest milk-producing areas in the UK, where there is a significant problem of tuberculosis in cattle. Fortunately, that is a debate for another day. I am aware, through my constituents, that there is an attraction to housing cattle indoors as far as possible, because doing so reduces the risk of infection from TB and enables farmers to bulk buy feed and bedding materials. Hon. Members will be aware that feed has never been more expensive than it is this year.

It is also clear that production on a larger scale reduces the chances of pollution. We are all aware, sadly, of the incidences of pollution as a consequence of leaking slurry tanks and the like over the years. Fortunately, there has been a decrease in such instances, partly because of housing measures that people have put in place and are increasingly under pressure to implement.

There is an argument, whether it is proven or not, that indoor milk production reduces the carbon footprint of particular farms. Other hon. Members will no doubt expand on whether that is a compelling argument.

I am not trying to justify or promote large-scale dairy production; I am simply trying to set out what my milk-producing constituents see as an essential consequence of the supermarket grip on the industry, and saying that they regard themselves as being much more likely to be able to invest decent sums in modern technology—we have heard about anaerobic digesters—under such conditions than they would be able to under any other system.

[Roger Williams]

My hon. Friend is generating an interesting point of view, which is that we need a range of dairy farms, from small and medium-sized ones to larger ones. The hon. and learned Member for Sleaford and North Hykeham (Stephen Phillips) said that there is a welfare code for dairy animals. Perhaps animals kept in larger units might need a different approach under the welfare code, because they will be kept in different circumstances.

[Simon Hart]

I agree. There is no greater expert on this subject than my hon. Friend.

I want to return to welfare concerns. The hon. Member for Stoke-on-Trent South (Robert Flello) made an interesting intervention on whether dairy production would be encouraged to move from its traditional countryside location to brownfield sites. Although there is a danger of that happening, I am not as convinced of it as he is. There is more to dairy farming than milking cows; there is young stock, dry cows and sick and lame animals that cannot be housed indoors. There will always be a need for animals in green fields. I do not think that we want to assume that milking is the only part of the process and that dairy farms can be located anywhere in the UK. It is not quite as simple as that.

When we discuss animal welfare in this context, there is a gulf of difference between reality and perception. My hon. and learned Friend mentioned legitimate concerns. I am always wary of legitimate concerns unless they can be backed up by evidence. The Department is assessing the welfare implications of indoor cattle. We Members of Parliament, particularly those representing agricultural areas, would be well advised to be a little bit cautious about talking about legitimate concerns until we know that there are legitimate concerns to be cautious about.

It is important to remember, in considering the scale of milk production, that thin, lame or ill cattle can be segregated in bigger herds, whereas in normal circumstances, in small-scale production, they can be prone to bullying by other animals in the herd. Being able to do such things on a larger scale, there is an argument, which I accept is unproven, that says that welfare standards can be improved. In other words, big is not necessarily bad. I suspect that we are all aware of small dairy producers—the sort that we are trying to champion—whose welfare standards are not as good as larger, slightly more industrial units, to use an unattractive term.

We have to be cautious about assuming things and being led by the nose—I am not suggesting for one moment that hon. Members are—down the road that says that big is bad and that the only kind of high-welfare milk production is undertaken by small producers. We know that that is not so. We need evidence to hand before we make judgments in that regard.

I welcome this debate, which has been waiting to be heard and which has huge consequences for the rural economy. If the Government get this wrong—I am not suggesting that they might—there will be massive social and environmental consequences and it will be hard to be put things back together.

Hon. Members have mentioned economic circumstances, but tracing this issue to its source it comes back to a simple question. How do we deal with the stranglehold of the supermarkets over our dairy industry? It is not the fault of farmers, the planning system or the Government; it is the fault of supermarkets, which are putting short-term gain at the top of their agenda, at the risk of putting the UK dairy industry either into terminal freefall or being exported.

We need to impress on the supermarkets the importance of this matter. A demonstration by Welsh farmers outside Asda in Chepstow tomorrow will express this view. I said that I would not name a supermarket, but now I have. It is a sad day when any section of the agricultural community is subject to such pressure, because the long-term downstream consequences for the rural community as a whole will be devastating unless we get this right.