Intensive Dairy Farming

Simon Hart Excerpts

Tuesday 14th December 2010 Westminster Hall

[Stephen Phillips]

My hon. Friend is correct. The real point is that the price pressure that has come down from the supermarkets, whether through intermediaries or those responsible for purchasing milk production, has been so great that many farmers have been driven out of business, and those who remain in business, however efficient they are, are effectively driven to a point where the costs of production are almost equal—and sometimes greater than—the price that they are being paid for their milk.

The Government will have to grapple with that problem in a way that the previous Government did not. I venture to suggest that we would not be having this debate if we paid our dairy farmers a proper price for their milk, because there would be no need to consider super-dairies.

I have already made it clear that every farmer I have met is concerned more for the welfare of his or her stock than is generally accepted, yet the proposals for mega-dairies undoubtedly give rise to legitimate concerns about the welfare of farm animals. Although the Department for Environment, Food and Rural Affairs and the Minister, in his previous utterances, are correct to say that the most significant influence on welfare is the stock keeper, rather than the system, that statement depends on the existing status quo and, with regard to the proposals for Nocton and other mega-dairies, might not take into account potential future developments in the industry.

Future intensive dairy farmers, if we are to go down that route, will have to comply with existing welfare legislation for their animals, a point that I look forward to hearing the Minister confirm. Those animals will need space to move around in and adequate bedding, and all the other regulations for the existing dairy industry will have to be complied with. If we are to go down that route, there is no reason to believe that farmers would not treat their herds as well as the vast majority of small dairy farmers currently treat their own. It would not be in their interests to mistreat their animals, and I do not suppose that that would happen. However, it is equally clear that very large dairies require better monitoring, and different—much more stringent—animal welfare guidelines, and I hope to hear the Minister confirm that.

The point is that although poor welfare can occur in both intensive and less intensive systems, the evidence available from the United States and various other jurisdictions plainly shows that intensive systems are more predisposed to increasing the risk of poor animal welfare. Intensive milk production models are driven almost exclusively by volume; they demand high yields from cows to cover their inherently high set-up and operating costs. The relentless pursuit of more and more litres of milk to reduce the unit costs of production can take its toll on health and welfare, which is what concerns so many people. The toll on health and welfare can reduce the longevity of animals and place pressure and stress on them.

Experience from overseas, as I have indicated, is not promising. The driving up of milk yields through intensive selection has come at the well-documented expense of animal welfare, so the real fear is that mega-dairies in this country would do nothing to address the lameness, infertility and other health problems that already affect too large a proportion of Britain’s existing dairy herd.

However well cows are kept while indoors, it seems to many to be wholly unnatural to keep them inside all year round, and I understand those fears, although it is fair to say that that happens in some colder parts of continental Europe. Not allowing cows outside to graze during the grazing season seems to many to savour of battery farming, someone that this country set its face against a long time ago.

We must not ignore the fact that a lack of access to pasture concerns many people and is often responsible for animal health problems, which I do not exaggerate, as I am sure the Minister will accept. A review carried out by the European Food Safety Authority in 2009 concluded that zero-grazing systems give rise to a higher incidence of various health problems in animals and reduce their capacity to engage in normal social interactions. That concerns many farmers and many consumers when they turn their minds to the question.

Dairy farming has been part of this country’s agricultural economy for many hundreds of years and is part of our rural heritage, as it is in my constituency. That is partly why the reduction in the number of British dairy farmers is of such concern to so many of us. The numbers are frightening: in 2000 there were 23,286 registered dairy production holdings in England and Wales, but today the number is 11,233.

Many of those farmers have gone out of business for reasons to which I have already alluded—they cannot get a good price for their milk and too often have to sell at below the cost of production. I accept that intensive dairy farms could provide economies of scale and allow for greater mechanisation, which would start to reduce those trends, but I hope that the Minister will accept that that must naturally come at the expense of smaller operations.

To put it another way, although such economies of scale are great for the owners of intensive dairy farms, they sound a further death knell for many smaller producers. Although many people say that they would prefer to purchase their milk from smaller producers, there is, as the Minister knows, no requirement to label the origin of milk, a fact that supermarkets know well and wish to see continue.

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

On my hon. and learned Friend’s previous point, is he aware that a number of auctioneers across the UK are simply not taking bookings to sell milking cows until well into next year because there is such a backlog of farmers going out of business and trying to sell their dairy cows?

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[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.

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[Glyn Davies]

I heard that the original Nocton proposal was for 7,000 cows. Once we reach 1,000, the principle is much the same—we are dealing with a big unit in which the animals are housed for almost the whole time. That is a different way of producing milk. I accept my hon. and learned Friend’s point.

Let us go into the reasons for not doing it. The first was in the more significant part of my hon. and learned Friend’s introductory speech: the driving out of small farmers as a result of the economic conditions that the larger farmers might create. I am not sure that I accept that reason. When I was milking 70 cows, I was accused of driving out small farmers. That was the position then. In truth, a person hand-milking seven cows was just not economic—that was the reason for stopping the business. In those days, the 70-cow unit was economic, but we reached a stage when it was not.

Small farmers will be and have been going out of business—we heard the numbers earlier. That has happened and will continue, irrespective of the large farming unit. I do not think that there is a direct correlation between the two issues.

[Simon Hart]

We are in danger of muddling two things, one of which is the size of the unit. Plenty of farmers have gradually crept up from seven cows to 70, from 70 to 170 and, in my family’s case, from about 100 to 400. Is there some cut-off point, above which they should not be allowed to go? That is one of the issues we are discussing. The other issue is whether it is appropriate to be milking cows indoors 365 days of the year. We are in danger of confusing the two issues.

[Glyn Davies]

Several issues are probably involved, so I want to make my second point, which is that we might want to resist the development on welfare grounds. We can include housing for 365 days a year as a welfare issue. Even with a seven-cow herd, the animals were indoors for six months of the year. Being indoors is not particularly unusual. I think that the application for a 1,000-cow unit in my constituency proposes that the animals should be indoors for almost two thirds of the year. I suspect that the application for the 7,000-cow unit proposed having the animals indoors, apart from the followers, for 12 months of the year. What we have to keep at the core of our thinking is high welfare standards, and we must be guided by science or we shall lose the argument in the end.

[Mr Edward Leigh in the Chair]

I do not accept that it is necessarily more difficult to meet welfare standards with a large herd than with a small herd. I know that some people will disagree, but I just do not think that the large size of a herd is a proven reason for that. In fact, we can argue a little bit the other way, because for a large herd, there will almost certainly be professionally trained staff, and a large unit will be able to afford to keep them professionally trained. It will be able to do the training that smaller units cannot. A large dairy unit will almost certainly have an ongoing relationship with a veterinary surgeon, who will call in regularly. The smaller units do not have that. Most farmers with herds the size of mine considered themselves to be veterinary surgeons. We were not willing to pay what I thought were excessive bills at the time—we did it ourselves. I think that we shall find that the welfare standards in large units will be very impressive, and if they are not, they will not get permission.

There are many other, environmental reasons why one might want to refuse an application for a large unit, and I think that planning authorities should be willing to turn down applications, unless they meet their exacting standards. The application in my constituency is within view of Powis castle. The local planning authority will have to consider that issue. The Environment Agency will have to examine all the implications for the environmental impact. All such issues will have to be considered by a planning authority before approval is secured.

I want to deal now with the public resistance element. During my eight years in the National Assembly for Wales, I was a huge enthusiast for organic farming and farmers’ markets. We should continue with that, but we have to persuade people to come and buy from these units. The reality is that most customers—consumers—will buy where the price is cheapest. The supermarkets will drive down the price, and unless British farmers produce the product, they will import it. My hon. Friend the Member for North Thanet (Mr Gale) made a very good point about exporting a problem. That is exactly what might happen in the dairy industry unless we deal with the matter. In relation to public resistance, we need a balanced and open mind and a view based on scientific knowledge.

I want to appeal not only to my hon. Friend the Minister but to everyone who participates in the debate—because it will be an ongoing debate; the issue will not be dealt with in the short term—not to take an instinctive view. Mine might be one of antipathy. We must examine the science, because in the end that is what will rule the decision. If we in this House are to have an impact on the issue, we have to present the facts and have an influence, we hope, on the purchasers, which are mostly supermarkets. Only the Government can do that now, because supermarkets have reached such a state of dominance in the market. By taking a balanced approach, we may well have some influence and, while not necessarily returning to the image of my childhood, staying rather closer to it.