It is a pleasure to serve with you in the Chair, Ms Ghani. I congratulate the hon. Member for North Devon (Selaine Saxby) on securing this timely debate. These are vital industries that are crucial to our food security, to tackling climate and nature emergencies. They proved remarkably resilient through the pandemic. I pay tribute to all those involved: farmers, processors, retailers and shop workers. But I think one or two contributions have been a touch rose-tinted, because it is really tough out there.
Last week, I joined the shadow Secretary of State, my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) in launching Labour’s rural review, on a family farm in Cambridgeshire. Thanks to the excellent organisation by the National Farmers Union, we heard from a real mix of farms. It is very hard out there. With the changes to farm support, it is obvious that some—perhaps many—will not survive. We have repeatedly warned that that is exactly what the Government’s Agricultural Act 2020, allied with the refusal to rule out undercutting through lower trade standard imports, was designed to do. We will fight that all the way. We are delighted to support Great British Beef Week.
I must point out just how interconnected but we still are with the European Union. EU countries have accounted for 70% of meat exports, 77% of dairy exports, as well as 83% of meat imports and 99% of dairy imports. Sadly, the rushed botched deal at the end of the year has left us facing really serious problems, not least in achieving carcase balance. The latest statistics from the Office for National Statistics show that exports of food and live animals were down about 31% on January and February 2020. In absolute value terms, exports of meat and meat preparations to the EU were particularly affected—down 52%. That is a systemic issue.
The British Meat Processors Association has warned that the industry is now facing a potential permanent loss of up to half of its exports. For dairy, exports remained at drastically low levels in February, according to recent figures published by the Agriculture and Horticulture Development Board. The figures, drawn from Her Majesty’s Revenue and Customs data, show
trade with Europe down more than 90% for certain products compared with a year earlier. Cheese exports were down 75%, whey 83%, milk powder 86%, and butter exports were down 89%. Be in no doubt that it is tough for many. We know it is particularly hard for small independent producers. If it is hard to sell to the EU, meat and dairy farmers face a challenge to their incomes.
The Minister and I have been discussing changes to farm support for a long time. A new analysis by the Labour party shows that rural England stands to lose more than £255 million this year alone. That translates to as many as 9,500 agricultural jobs, and that will only get worse year on year. Of course, the schemes are still being designed, tested and piloted, as we have discussed on numerous occasions, but farmers are rightly concerned by the gap between the existing basic payment scheme being phased out and the environmental land management scheme. According to an analysis of DEFRA data by the Country Land and Business Association, 75% of farming enterprises are currently unprofitable without direct payments. According to a recent survey of landowners and farmers by the CLA, 76% fear that the new payments will not be sufficient.
It is hard to sell into the EU, support is being withdrawn and, frankly, British meat is still open to being undercut in trade deals. As we have repeatedly said, the Government should have put the protection of food and farming standards into law, but they have not. Without re-rehearsing the arguments made today, deals are currently being negotiated. UK campaign groups have raised repeated concerns over meat production in Australia and New Zealand, and the Government’s consultation on a prospective UK-Australia deal highlighted concerns about Australia’s farming practices, such as hormone injections in beef, excessive use of antibiotics in food production, high rates of food poisoning and lower standards of animal welfare, including continued use of sow stalls. Just last week, however, the Secretary of State for International Trade was lauding their high standards in the main Chamber. Frankly, it should be obvious that British farming will be sold out. The Trade and Agriculture Commission, which the Government conceded under pressure, has reported that there has been no response from the Government. Can the Minister tell us when we will get it, and will they adopt the recommended standards framework?
There is much more to be said, but let me move on to one of the potential solutions: public procurement. Supporting British farming means buying more British produce, which means looking at the public sector and the £2.4 billion a year spent on catering, and thinking about how more can be spent with British farmers. Government Buying Standards for Food and Catering Services, or GBSF, provide helpful guidelines, but these are not being applied in too many parts of our public services. That is hardly surprising, given the cost pressures that they face, but that is why leadership is required.
In such circumstances, who better to turn to than the EFRA Committee? As usual, its Chair, the hon. Member for Tiverton and Honiton (Neil Parish), made his thoughtful and well-considered contribution earlier, but the Committee’s recent report urged the Government to update their buying standards for food into the new decade, address outdated standards on nutrition and animal welfare, and close loopholes in the current rules. The report also expresses disappointment that the
Government do not use the GBSF as a mechanism to promote buying British within the public sector, as is the norm within public bodies in countries such as France.
Let me say a word about two specific sectors. There is insufficient time to do justice to lamb and poultry, but there are a range of issues affecting dairy. We all hope that the new dairy code of conduct will be successful and ensure the fairness that many people feel has been lacking. We will be watching closely, but I fear that it may have to be revisited yet again. There are also workforce challenges. A recent survey by the Royal Association of British Dairy Farmers has revealed that almost one third of dairy farmers would consider leaving the industry due to a lack of labour, with 63% of dairy farmers struggling to recruit in the past five years. On their behalf, can I ask the Minister whether DEFRA is considering supporting the inclusion of dairy technicians in the next review of the Migratory Advisory Committee’s shortage of occupation list?
I turn now to the pig sector, which has had a really hard time. It is not all the fault of the Minister on this occasion—there is African swine fever in China, a surfeit of cheap pork in Europe and skyrocketing feed costs—but it is disappointing to hear that the percentage of British pork on the shelves has fallen in two of our major supermarkets, which is not helpful. Alarming figures suggest that specialist pig farms are expecting to see an 80% decline in average income between 2019-20 to 2020-21. The National Pig Association has described it as a perfect storm.
Some of the problems were indeed down to the post-Brexit export problems caused by the Government, but at its peak, a backlog of 100,000 pigs awaiting slaughter were housed in temporary accommodation on UK farms, which pushed up carcase weights and led to swingeing price discounts imposed by processers. I understand that the pig sector has approached the Government to call for sector-specific support, as was delivered to dairy farmers at the start of the pandemic, and I would be grateful to hear what consideration the Minister is giving to that request.
Let me finally mention our biggest challenge of all: climate and nature. We very much welcome the National Farmers Union’s commitment to reach net zero by 2040, and we want to see more support for farmers to reduce their emissions. That is why it is so important that we get ELM right and make it accessible in good time. British agriculture has to be on the front foot and continue to demonstrate positive progress. We will work with farmers to do anything that we can, and we recognise the efforts that are being made. Be it the dairy road map or Arla’s climate checks initiative, we can see people working hard throughout the farming and processing sector to get the advances that we all need.
There are indeed many paths to a sustainable future. A report from the Food, Farming and Countryside Commission in January made a powerful case for an agroecological approach that many will find attractive. Finally, we await part 2 of Henry Dimbleby’s report with keen interest. The country should not have gone without a food strategy for a decade. It will be fascinating to see how palatable the Government find his recommendations. Will the Minister tell us when we can expect it?
We believe that the meat and dairy industries, with the right support and help, will play a key role in achieving the necessary climate and nature targets in the
future. I look forward to working with everyone in the industry to achieve that. I am delighted to have had the opportunity to take part in this important debate.
3.50 pm