Dairy Industry

Jeremy Lefroy Excerpts

Thursday 13th September 2012 Westminster Hall

[Jeremy Lefroy (Stafford) (Con)]

I congratulate the hon. Member for Dunfermline and West Fife (Thomas Docherty) on securing this debate.

Staffordshire is one of the UK’s leading dairy counties. Dairy farming is important to my constituency; let us not forget how important it is to so many others. Some 70 trades and suppliers, possibly more, are estimated to depend on each 400-acre dairy farm.

Another almost unique feature is that Staffordshire has kept its county farms, which were set up after the first world war. Half of Staffordshire’s county farms, some 50 of them, are in my constituency of Stafford. Those farms provide a route into dairy farming for young people, which is essential because the average age of farmers is between 55 and 65, depending on who we listen to.

Last Friday, I attended a meeting at Church farm, Coppenhall, at the invitation of the Madders family, with many dairy farmers and the National Farmers Union. We discussed the problems they face. As time is brief, I will highlight three or four areas.

Clearly, the first area is milk prices and fair treatment. The common refrain was, “Give us the highs in prices and we’ll take the lows.” It is often said that the processors and supermarkets are quick to put down the prices paid to farmers but are slow to raise them when the market goes up, and the market will surely go up because dairy production figures across Europe in August 2012 show that in Germany production was 0.3% down, in France production was 1.7% down and in the UK production was 3.7% down. Those figures reflect a combination of the weather and low milk prices. So there will surely be price rises, which must be passed on to farmers.

The second vital area is marketing. Many of my constituents are already taking up the challenge of adding value—Bertelin Farmhouse Cheese in Ellenhall, for example, which was previously in the constituency of my hon. Friend the Member for Stone (Mr Cash), who will no doubt know the farm—but there is much more potential. I have recently had to start buying lactose-free milk, for which there is a huge market in the UK, yet the milk I buy is made in Denmark by Arla.

[Mr Cash]

Does my hon. Friend agree that there are also enormous export opportunities for dairy farmers? I have just come back from India, from where people will shortly be coming to see Staffordshire dairy farmers precisely to try to develop joint ventures. Is that not a great opportunity?

[Jeremy Lefroy]

As so often, my hon. Friend is a prophet. I was just about to say that.

The previous Minister, my right hon. Friend the Member for South East Cambridgeshire (Mr Paice), who has rightly been applauded, was in China on a trade mission and saw no British dairy products, despite there being many from the Netherlands, Germany, Denmark and so on. We must do more, and the industry must do better.

Supermarkets, too, can do more. On a holiday in the Republic of Ireland a few years ago, I entered a Tesco that was festooned with Irish tricolours promoting products processed or produced in the Republic of Ireland. I welcome that great idea. I want to see far more Union flags in UK supermarkets promoting British foods.

The UK Government, too, can do more, but, first, a word of praise from the farmers. They say to me, and I do not know whether hon. Members agree, that the Rural Payments Agency has improved considerably in the past two or three years, and due credit should go to the RPA and the ministerial team.

As the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) said, the current EU negotiations are vital. I am concerned to hear that British representation is not as strong as sometimes it should be. In a debate last year, I stressed the continued importance of single farm payments, particularly to the small farmers who continue to be the backbone of the UK dairy industry. The UK and Portugal are currently the only countries applying voluntary modulation from pillar one to pillar two. The concentration on environmental measures has clear benefits, but we should not go any further in that modulation if it puts us at a competitive disadvantage to our European neighbours.

I want to allow time for others to speak, so I will conclude by saying that I welcome this debate. The time is right for fair prices. I worked for many years in the coffee industry, in which I saw the impact of fair trade and fair prices. I would like to see a similar approach in the dairy industry, based on the voluntary code of practice, with supermarkets, processors and farmers working together.

Finally, I pay great tribute to those dairy farmers who work day in, day out, week in, week out, rising before dawn and going to bed late at night, to put those products on our tables.