UK Parliament / Open data

UK Dairy Sector

I congratulate the hon. Member for Ceredigion (Mr Williams) on securing this incredibly important and hugely topical debate on our dairy sector. The dairy sector has a long and proud history in Britain and in Ireland, both north and south. In Northern Ireland, the dairy industry stretches back many generations. Members will agree that dairy products are so much a part of our everyday diet that it is easy to forget the huge skill and effort it takes for farmers to produce such world-class produce. In fact, the all-party group on dairy—I am one of its vice-chairs—recently produced a helpful document on the need for Government, schools and the wider industry to promote dairy as an essential part of our diet.

We have already heard about the challenges faced by the dairy sector in Britain. Unfortunately, the issues are even greater in Northern Ireland, where they are amplified by our reliance on the export market. Northern Ireland’s small population and proportionally larger dairy sector means that our farmers must seek export markets for their produce, either in the south of Ireland, in Britain or further afield. That means that our farmers are the first to feel the impact of falls in the global dairy price

or currency shocks. The situation is made worse by the lower prices Northern Irish farmers tend to get for their produce.

Despite producing dairy products that are as good as or better than products produced here in Britain—forgive me for being slightly parochial—Northern Irish farmers consistently suffer from lower average prices paid by national processors and retailers. In 2014, the average price for milk in Northern Ireland was 4.42p per litre less than the average price in Britain. In 2015, the price difference was even greater, reaching 5.34p per litre. Farmers are having to sell their milk for less than what it costs to produce. Anyone can see that that is unsustainable.

This is not just a matter for us Northern Ireland MPs or the Northern Ireland Executive in Belfast; regional dairy price inequality should concern every MP and Minister in Northern Ireland and Britain. Although we would say that Northern Ireland is the worst affected, there are many areas of England, Scotland and Wales where farmers are paid less than the cost of production. There is no doubt that that has dire implications for the long-term future of the industry. The Environment, Food and Rural Affairs Committee produced a very good report on farm-gate prices and made recommendations that I hope the Government will be able to implement.

Type
Proceeding contribution
Reference
608 cc383-4WH 
Session
2015-16
Chamber / Committee
Westminster Hall
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