Dairy Industry

The hon. Gentleman is quite right. Indeed, we in Wales are concerned not only about aspects of farming, which are important in sustaining rural communities, as they are in England, but about the further point that the agricultural community is the mainstay of Welsh language and culture. I hardly need to say that there has been a huge and accelerating change in the dairy business over many years, with the size of herds increasing to a perhaps unfeasible level, along with the capital costs that are difficult to sustain. I occasionally talk to a constituent who is a good friend of mine, named Iestyn Hughes, of Mynachdy Bach. He is now retired but is fond of telling me that he brought up a family, farming a herd of 25 to 30 cows. It was very hard work, but he would not be able to do that now. There is innovation, and there are efficiency gains in the industry. Another of my constituents has adopted the New Zealand method. He now has 800 cows out in the fields all year round and does not bring them in at all. It is a huge operation, with economies of scale, and, I hope, very good profits, but that sort of option is not open to the vast majority of farmers in my constituency. I represent the area Hufenfa De Arfon, where the South Caernarfonshire Creamery is based. The creamery is a farmers’ co-operative set up in the 1930s. It has the vertical integration that is seen as so important and produces not only liquid milk but cheese, butter, yoghurt, buttermilk and, I am sure, other things as well. It is a hugely efficient and successful operation. It has always been in the highest 10 per cent. for paying its members; its products are of superb quality and it adds value. It handles organic milk for other retailers and it exports cheese. It produces a cheese called Monterey Jack, which is an American recipe, and exports it —to America. Its premium vintage cheese is called Hen Sir, or Old Shire—and an excellent cheese it is. However, even that co-operative cannot buck the market in which retailers get such a big share and producers get essentially what they are given. I think that the situation is verging on market failure. It is almost as though the market does not sustain a viable industry, at least as far as farmers are concerned. I shall not go into the subject of retailers.