UK Dairy Sector

Daniel Kawczynski Excerpts

Wednesday 20th April 2016 Westminster Hall

[Mr Williams]

I completely concur with the hon. Lady, who has experience of the farming industry both in England and in Wales. I will address the Groceries Code Adjudicator later, but I agree with her sentiments.

In Wales, the dairy sector continues to suffer from months of continuing low prices and poor profitability, and many of the farming unions are not convinced that there is likely to be a recovery any time soon. According to AHDB Dairy, for the 12 months to December 2015 total full costs of production ranged from 25.7p to 34.4p a litre. In short, there is huge disparity between the costs of production and the price that producers receive, which is a huge concern. The figures over the past decade show the loss of 5,500 dairy producers in England and Wales, and that downward trajectory will continue if nothing is done to help support dairy farmers. That means a change in the ethos of some of our farmers, but it also means positive action from the different Governments, whether it is the Government here in Westminster or the devolved Administrations. If we do not do that, it will have a terrible impact on the rural communities that many of us represent.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Will the hon. Gentleman give way?

[Mr Williams]

I give way to a neighbour of Wales.

[Daniel Kawczynski]

One thing that the hon. Gentleman has not mentioned is the fact that this debate is almost as repetitive as the changing seasons. I must have been to more than 12 such debates over the past decade, and we always get platitudes from Ministers, who say that everything is being done. I hope he agrees that, when the Minister stands up on this occasion, we will hearing about concrete steps that the Government are taking to support our dairy farmers.

[Mr Williams]

I agree with the hon. Gentleman. I refer him and the Minister to the report by the Environment, Food and Rural Affairs Committee. The hon. Gentleman has a fine pedigree in championing such issues. He set up the all-party dairy group in the last Parliament, and he initiated many of the 12 debates that I mentioned. I thank him for his contribution.

I mentioned rural communities. I reflect on the words of the farmer whom I spoke to on the streets of Aberystwyth last weekend, who told me that price fluctuations over the past five years have cost his business something like £100,000. That is a huge loss to the local economy, local businesses and the wider agricultural economy.

--- Later in debate ---

[Neil Parish (Tiverton and Honiton) (Con)]

Hear, hear!

[Daniel Kawczynski]

Shame! Shame!

[Ms Ritchie]

Perhaps it would help if I moved on.

We must look at solutions. The Government must seek to bring to Britain and Northern Ireland a scheme that the European Investment Bank has already trialled in the south of Ireland. Under the scheme, the bank would allow DEFRA and the devolved Administrations to act as guarantors for loans made to dairy farmers. That added level of security would allow banks to make loans on much more favourable terms. For instance, in Northern Ireland, a bank loan made to a dairy farm typically has a pay-back period of 15 years, which is well below the average in Britain because of the difficulties to which I have referred. The Ulster Farmers Union believes that with the Government acting as a creditor, banks could offer loans with pay-back periods of 30 years, doubling the time farmers typically now have. Will the Minister and his colleagues in the Department give some consideration to that scheme? Will he give us his opinion, or at least go away and have a think about it before coming back to us MPs with a particular interest in the matter?

--- Later in debate ---

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I must correct the hon. Member for South Down (Ms Ritchie): the best dairy products are from Shropshire. I congratulate the hon. Member for Ceredigion (Mr Williams) on securing this debate.

When I was first elected as a Member of Parliament in 2005—11 years ago—we set up the all-party group on dairy farmers because at that time Shropshire farmers were on their knees. We heard a lot of anecdotal evidence about the terrible financial difficulties they were suffering. Eleven years on and we are in almost the same place as then—indeed, we are probably even worse off. It is rather frustrating to have repeated debates in Westminster Hall while the situation continues to worsen, so I am really looking forward to the Minister giving us some heart-warming news of specific Government action on this issue.

I am delighted that tomorrow I will be attending the Shropshire business awards 2016 at RAF Cosford to support my friend, Daniel Morris, a cattle farmer, in the farming section. I hope that my hon. Friend the Minister will wish my constituent every success.

When we set up the all-party group on dairy farmers, more than 200 MPs joined—it was one of the largest all-party groups in the House of Commons. We produced a report, and during the process interviewed a lot of people, even going to Brussels to take evidence. We came up with two recommendations: first, a grocery adjudicator, and secondly, a limited cull of badgers. We took those recommendations to the then Secretary of State for Environment, Food and Rural Affairs, David Miliband, who basically laughed us out of his office saying that both were completely impossible and would never happen. I am extremely pleased that the Government have introduced the Groceries Code Adjudicator but, as has been said already, we want to hear what teeth the adjudicator is going to be given and about the roll-out of limited badger culls.

[Simon Hoare (North Dorset) (Con)]

I represent an area that has had a cull, and the data I have seen are certainly encouraging. Nevertheless, we should not simply lay the blame with the Labour Secretary of State at that time, because later the then Lib Dem Deputy Prime Minister, the right hon. Member for Sheffield, Hallam (Mr Clegg), put the brakes on the rolling out of the cull in Dorset. A Conservative Secretary of State took those brakes off.

[Daniel Kawczynski]

I am extremely grateful to my hon. Friend for that intervention.

I want the Minister to remember what I am about to say and to have these figures indelibly imprinted on his mind, in perpetuity. In Shropshire in 1997, we slaughtered 47 cows because of bovine tuberculosis; last year, the figure was more than 2,000. It has gone from 47 a year to 2,000 a year. We have a bovine tuberculosis crisis in Shropshire. I have said this in previous debates and I do not mind saying it again. I have sat round a kitchen table with one of my dairy farmers, Chris Bulmer from Snailbeach, after his entire herd had been taken away. We sat together crying, such is the emotional drain on farmers and their families.

The biggest organisation in my constituency is the Shropshire Wildlife Trust. What is its symbol? A badger. I know that many people from the trust would like to hang me from the nearest lamp post because I advocate a cull. They would have difficulty because I am so tall.

[Neil Parish]

Unless they got a higher lamp post.

[Daniel Kawczynski]

They would need an extra-high lamp post. There has been fury and blood on the carpet at the meetings I have had with the Shropshire Wildlife Trust. It has to understand that nobody wants the needless slaughter of animals, but when our fellow human beings—our fellow citizens—are going through such appalling financial misery, the time has come for the Government to act boldly and roll out the cull to other parts of the country.

My right hon. Friend the Chancellor recently announced in his Budget an extremely controversial measure on fizzy drinks. It is not universally popular, but he took a really bold move that is shaking the industry. Something of a similar nature must now take place to protect our dairy farmers. We cannot allow this vital industry to be decimated.