UK Dairy Sector

Corri Wilson Excerpts
Wednesday 20th April 2016

(8 years ago)

Westminster Hall
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Corri Wilson Portrait Corri Wilson (Ayr, Carrick and Cumnock) (SNP)
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My constituency is predominantly rural. Dairy farming is at the heart of Ayrshire, so I am pleased to have the opportunity to speak in this debate. Ayrshire is home to the famous Ayrshire cattle and has been described as the dairy of Scotland. That claim is now in jeopardy, as the current milk prices are threatening the livelihoods of many farmers across the region.

Earlier this year, I was contacted by a group of local dairy farmers in dire straits, many of whom would never have previously come to an MP with a problem. That group was just a small proportion of the 70% of dairy farmers in Scotland who are non-aligned—in other words, they do not have direct contracts with supermarkets via milk processors, so they have to accept the price that is given to them on the open market.

Milk prices have gone into freefall in the past 12 months. My local farmers report that they now receive a pitiful 14p per litre, while their aligned neighbours typically get about 22p to 25p. A broker collects the milk from both the aligned and non-aligned farmers, which means that the 22p milk sloshes around in the back of the tanker with the milk that has been bought at 14p. That situation sets neighbours against each other, as the milk ends up in the same cartons regardless of the price paid to the farmer.

I welcome the Scottish Parliament’s inquiry into the milk pricing crisis and the work the Scottish Government have undertaken to support the dairy sector. One of the key issues that we in Westminster can address is the Groceries Code Adjudicator, which has been mentioned a number of times. Unless the adjudicator is given a remit to look beyond the relationship between retailers and processors, there is little point in having one.

One of my dairy farmers recently said to me that people need farmers at least three times a day, yet the industry is being decimated. We cannot sit back and allow that to happen.