Wednesday 6th January 2016

(8 years, 4 months ago)

Westminster Hall
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Derek Thomas Portrait Derek Thomas
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I welcome my hon. Friend’s intervention. I first met him at a farming industry event at a conference many years ago—probably when I was first selected as a parliamentary candidate. I will certainly continue to press my hon. Friend the Minister on that matter.

Income figures for 2014-15 from throughout the UK show the harvest down by 9%, with a 24% drop in general cropping, a 25% drop in income for pig farmers, a 20% drop for poultry farmers and a 29% drop for mixed farms, so the situation is bleak. Basic business sense says that no one will invest in a business when they have no idea what the return will be from one month to the next, and no one can expect a business to survive if they are consistently paid less than the cost of production. Yet that is the daily reality for large parts of the British farming industry. They persevere when any other business would pack up and go home. We cannot afford for British farmers to pack up. We must not ignore the threat to British producers.

For many farmers, the price they are being paid does not cover the cost of production. If that continues, we will see farms disappear and less food produced—indeed, we already have. We need to create an environment in which farmers are consistently paid a fair price so that they have the confidence to invest in their businesses, employ the workers they need and produce food and drink to meet UK demand and beyond. Why is that so important? Because British farmers play such a vital role, as I said earlier. They protect, maintain and preserve our natural environment. They provide jobs in farming, processing, engineering and tourism—some 3.8 million jobs in food and farming alone. They contribute £10 billion to the UK economy. In rural Cornwall, it is primarily our farmers who keep our Methodist churches open. Most importantly, our farmers feed the nation.

It is difficult to establish exactly how much of the food and drink that the UK needs is produced by UK farmers. The widely accepted figure currently stands at around 62%, but a recent National Farmers Union report suggests that as things stand, taking into account predicted UK population growth, it will drop to just over 50% when my children reach retirement age. The UK does not want to be in a position where we rely on exports for nearly half the daily food and drink we need. It does not have to be like that.

It is widely acknowledged that there is an opportunity for the UK to import less indigenous fruit and vegetables. The UK supplied only 23% of the fruit and vegetables it needed in 2014, yet frustration exists in the industry and further afield with what appears to be an inability to tackle the issue and maximise the potential of our food industry for the future. The National Farmers Union has done some very useful work in that regard, which the former Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for North Shropshire (Mr Paterson), reinforced in January 2014 when he said:

“By buying seasonal fruit and veg we can improve the nation’s health, help the environment and boost the economy…As British farmers and food producers, you know that we grow some of the best food in the world here, so why is 24% of the food eaten in the UK imported when it could be produced here? We have a top-class fruit and veg sector which produces everything from green beans to strawberries, yet we imported £8 billion of fruit and veg in 2012.”

It is in our interests to produce as much food as possible. If we want to ensure that good quality food continues to be available to us at a reasonable price, we must support our farmers.

Julian Sturdy Portrait Julian Sturdy (York Outer) (Con)
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My hon. Friend makes a powerful argument, and I congratulate him on securing this important debate. Is it not the case that we need to be absolutely clear with our food labelling? My local paper, the Yorkshire Post, has a “Clearly British” campaign to label food. Clear labelling will obviously help the whole process and help our hard-hit dairy industry at the same time.

Derek Thomas Portrait Derek Thomas
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I am glad my hon. Friend raised that point, which I will come on to. Clear labelling is a powerful tool for consumers, because they know exactly what they will get when they buy their produce.

The NFU’s recent “Back British Farming” campaign, carrying the slogan “Want great British food tomorrow? Buy great British food today”, makes it clear that the time for action is now. With a growing global population, there is every reason for us to produce more. We have the opportunity to grow because there is a huge international demand for food, and we want to be part of the solution.

Earlier I referred to complex challenges that require equally complex solutions. I am grateful to be speaking as a Back Bencher; I do not envy the position of my hon. Friend and colleague the Farming Minister, who is required to respond to this debate. However, there is some capital we can build on, which I believe is ripe for the taking—I hope Members will excuse the pun. If we get it right, it will help the British food industry no end.

UK farmers enjoy significant levels of good will from the British public. Recent research shows that 88% of the UK public think that farming is important to the economy and are concerned that we have a secure and safe domestic food supply. The British shopper wants to support the British producer. Over the recess—this takes me on to the point made by my hon. Friend the Member for York Outer (Julian Sturdy)—I wanted to see how easy it was for shoppers to support producers. I visited five supermarkets with two simple questions in mind: can I be sure that I am buying British produce, and can I be sure that the farmer is receiving a fair price?

To the credit of the Government, suppliers, retailers and, most importantly, consumers, the issue of labelling and country of origin has largely been resolved. Although legislation only requires the country of origin to be shown for products from outside the EU, we can often see the county of origin as well as the country of origin when buying fruit, vegetables, dairy products and meat. It is clear that the industry has responded favourably to consumer demand. However, I did find some butter that simply stated it was produced in the UK, whereas all others stated they were produced using British milk in the UK. I also found some salmon that was labelled as being from “Scotland or Norway”, which I found curious, as I had not previously met a salmon with such an identity crisis.

Despite various claims on packaging, I left each of the five supermarkets unsure whether the farmer received a fair price. I am not suggesting that they did not, but I found the packaging confusing. What consumers need, as they seek to support British producers, is absolute confidence that the product is British and that the farmer is getting a fair price. Unless we can provide that assurance, consumers will not be able to fully support the British farming industry, especially if they are being asked to pay a little extra.

We have seen consumers demonstrate that they are willing to pay more for milk and dairy products once they have complete confidence that the product is British and the farmers are getting paid a fair price. If they do not have that, they will continue to buy cheap milk. No noble-minded British person wants to give more money than they must to the supermarket bosses, but they would to the farmer, because they value British farmers and are concerned about food security. The truth is that we do not necessarily need to pay more. If I had purchased a Cornish cauliflower before Christmas, I would have parted with £1, knowing full well that the grower was getting just 18p for the cauliflower. It is possible to pay a fair price to the grower without hiking supermarket prices on many of the goods that the UK produces.

The great advantage of being a Back-Bench MP is that I have the space and privilege to do some blue-sky thinking. My blue-sky thinking is this. With such solid support for our producers from British consumers, with increasing concern about future food security and in the light of the torrid time our farming industry is enduring, is this the time for the Government to establish a UK fair trade brand, giving the consumer a rock-solid guarantee that when they choose to buy British, British farmers will get a fair price for their products? We need to remove all confusion and empower consumers to support the British farming industry further.

My objective is clear: to support British farmers and producers by encouraging consumers to buy locally farmed and produced food and by enabling them to easily identify genuine domestic products that have rewarded the farmer fairly. I want to see a Government-backed initiative to deliver that objective.

To conclude, I would like to ask the Minister to address a few short questions—which I gave him in advance, to allow him time to prepare. [Laughter.]