UK Dairy Sector

Liz Saville Roberts Excerpts

Wednesday 20th April 2016 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr, Gadeirydd. I thank the hon. Member for Ceredigion (Mr Williams) for securing this debate. Both he and I know that whether it is llaeth or llefrith, Welsh milk is best.

The efficient method of food production—namely, the conversion of grass into dairy produce—is particularly well suited to the Welsh climate. It would be irresponsible to stand back and do nothing when the industry is in crisis. As has been mentioned already, there are many reasons for the latest drop in milk prices, and we have mentioned Russia. As an aside, it is worth noting that Russia is subsidising its home dairy producers to the tune of $400 million as we speak.

We have heard about the role of supermarkets. Today is an opportunity to say that supermarkets should be encouraged—I use the word with emphasis—to ensure that discount retail price strategies are funded from their own profits, rather than dumped on farmers. The fact that the profit motive of retailers is allowed to trump the sustainability of UK farming is in the long-term interests of neither the UK consumer nor the UK economy. The primary ask from farmers is that the Government acknowledge that something is fundamentally wrong in the supply chain, which cannot be remedied without intervention. We cannot go on ignoring that fact and relying on the market to correct itself.

There are codes of practice in the food chain, both statutory and voluntary, that must be either proved effective or reviewed, strengthened and enforced. The statutory grocery supply code of practice applies, at present, only to the biggest retailers. It is overseen, as we know, by the adjudicator. The Government made a commitment in their election manifesto last year to increasing the powers of the adjudicator. I suggest that that might be done by reducing the minimum turnover requirement, making the arrangement applicable to a wider range of retailers. Perhaps that could happen in the two-year review that was mentioned.

Agriculture suffers from the public perception of being hand-out dependent. None the less, many farming families have shown great enterprise in the face of volatile markets by venturing into value-added or branded products. I must in the brief time available to me mention Dylan and Annwen Jones of Bryn Rhydd, Edern—my next-door neighbours, effectively—who, with their Puerto Madryn herd of Holstein-Friesians, have been producing the excellent Glasu ice cream. I am also proud to represent the constituency that is home to South Caernarfonshire Creameries at Rhydygwystl, which has been owned since 1938 by its dairy farmer members. I am proud to say that they are about to launch a new cheese factory unit, although this is a most difficult time to be operating.

I call on the Government to make full use of the potential of public sector and third party procurement opportunities, and to work with devolved Governments to enable and to invest in added-value processing opportunities. Finally, will the Minister make a commitment to press the EU Agriculture Commissioner to move ahead with proposals presently under consideration to allow emergency state aid of up to €15,000 per farmer annually?