That is clearly an issue, and the Groceries Code Adjudicator needs to address it.
Northern Ireland exports 85% of its milk products. There are a large number of dairy farmers in my constituency, and Pritchitts is one of the major milk powder producers. It is therefore immensely important for me to ensure that things change.
There is hope on the horizon with the pending abolition of the milk quota, which maintains high production levels even if demand remains static. I also welcome the resurgence of the Chinese market. I believe demand there is coming back, and we are pleased to see that. That might just be the thing that makes the difference.
A further concern, as my hon. Friend the Member for East Londonderry (Mr Campbell) said, is retailer price cuts. Asda is selling two litres of milk for 79p. That means that only 23p profit has been made—23p that has to be split between the farmer and the supermarket giant. It does not take Einstein to work out who is really making the money. I will give hon. Members a clue: it is not the dairy farmer. Farming unions are trying to encourage Dairy UK and the Dairy Council to support the promotion of local dairy products, and we agree; every hon. Member can talk about how the milk is sweeter, the cheese better-tasting and the yogurt particularly tasty in their area. My hon. Friend knows about yogurt—he is an expert.
The issue is clear for us. Farming unions have continued to fight for the EU intervention milk price to be reviewed. That has received support from the Minister at the
Northern Ireland Department of Agriculture and Rural Development, and has been backed by the Scottish and Welsh Farming Ministers. The Minister has claimed that there is no value for money in such interventions, so it would be unlikely that the UK would fight for the review. He needs to rethink his position, given the regional support and clear need for a review. I would certainly like a consultation, at least.
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