I am pleased to respond to this debate, and I apologise that I slipped out for a while to attend the Oscars—I refer, of course, to the fantastic Oscar’s book prize, which was started by the journalist James Ashton and his wife, Viveka, in honour of their son, who sadly...
I am pleased to respond to this debate, and I apologise that I slipped out for a while to attend the Oscars—I refer, of course, to the fantastic Oscar’s book prize, which was started by the journalist James Ashton and his wife, Viveka, in honour of their son, who sadly...
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment her Department has made of the effect of the dairy crisis on (a) jobs in the industry, (b) local economies, (c) supply chains and (d) the environment.
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment her Department has made of the effect of the dairy crisis on (a) jobs in the industry, (b) local economies, (c) supply chains and (d) the environment.
The dairy industry in Britain has had a very tough year. A slowdown in global markets, low farm-gate prices, and a strong pound increasing imports, have all contributed to this. The UK average farm gate milk price for March 2016 is 22.38p per litre. This represents a 10.5% decrease on March 2015 and continues the downward trend seen since November 2013.
There were 281 fewer registered dairy producers in England and Wales in April 2016 compared with April 2015 (a 2.8% reduction). This continues the long-term trend which has resulted in dairy producer numbers falling while the average herd size and annual yields per cow have increased. In the year ending February 2016, forecasts suggest that incomes on dairy farms in England fell by 45% to an average of £45,000 per farm. Average incomes on Welsh dairy farms fell by around 40% to £42,000 in the same period. Expert commentators such as Rabobank expect the current cycle of low prices to be maintained through most of 2016.
The Government continues to work closely with the UK farming unions, Dairy UK and Agricultural and Horticultural Development Board (AHDB) to assess the difficult market situation and what we can do to help the industry to recover. For example, we are currently drawing up practical options for creating new derivatives markets, co-operating closely with the AHDB’s volatility forum, farmers, processors and the finance sector.
My Lords, I congratulate the noble Lord, Lord Best, on securing this debate at a particularly timely moment and for his Communications Committee’s first-class charter review. There is so much that I agree with that, if I were to talk about it, I would just say “Tick, tick, tick”—I am...
My Lords, I congratulate the noble Lord, Lord Best, on securing this debate at a particularly timely moment and for his Communications Committee’s first-class charter review. There is so much that I agree with that, if I were to talk about it, I would just say “Tick, tick, tick”—I am...
They have plenty of cows in Ireland, as we do in this country, and my hon. Friend is absolutely correct. Had Magna Carta been written on paper, it would have been lost by around 1465, before the birth of Henry VIII—it would not have survived to his times. Let us...
They have plenty of cows in Ireland, as we do in this country, and my hon. Friend is absolutely correct. Had Magna Carta been written on paper, it would have been lost by around 1465, before the birth of Henry VIII—it would not have survived to his times. Let us...
I commend the hon. Gentleman on securing this debate. I must register a slight interest, as my husband runs an agricultural auctioneering business; he runs the Sedgemoor market, which many Welsh farmers come to. He has reported to me that there is a knock-on effect. It is not only the...
I commend the hon. Gentleman on securing this debate. I must register a slight interest, as my husband runs an agricultural auctioneering business; he runs the Sedgemoor market, which many Welsh farmers come to. He has reported to me that there is a knock-on effect. It is not only the...
I am extremely grateful to my hon. Friend for that intervention.
I want the Minister to remember what I am about to say and to have these figures indelibly imprinted on his mind, in perpetuity. In Shropshire in 1997, we slaughtered 47 cows because of bovine tuberculosis; last year, the figure...
I am extremely grateful to my hon. Friend for that intervention.
I want the Minister to remember what I am about to say and to have these figures indelibly imprinted on his mind, in perpetuity. In Shropshire in 1997, we slaughtered 47 cows because of bovine tuberculosis; last year, the figure...
It is a pleasure to serve under your chairmanship, Ms Ryan. I also want to thank the hon. Member for Ceredigion (Mr Williams) for securing this debate, which is important. I want to say a few words about the situation in Cumbria, where local farmers tell me it is the...
It is a pleasure to serve under your chairmanship, Ms Ryan. I also want to thank the hon. Member for Ceredigion (Mr Williams) for securing this debate, which is important. I want to say a few words about the situation in Cumbria, where local farmers tell me it is the...
It is a great pleasure to speak in this debate, Ms Ryan. I thank the hon. Member for Ceredigion (Mr Williams) for securing this debate and keeping a spotlight on dairy prices. May I offer him a little solace? I think a previous Minister, David Heath, from his party, was...
It is a great pleasure to speak in this debate, Ms Ryan. I thank the hon. Member for Ceredigion (Mr Williams) for securing this debate and keeping a spotlight on dairy prices. May I offer him a little solace? I think a previous Minister, David Heath, from his party, was...
Unfortunately, I have been asked for answers to 31 separate requests—I have written them down—and I have been allowed only seven minutes to respond, but I will do my very best.
Fundamentally, dairy matters deeply to the United Kingdom. The hon. Member for Ceredigion (Mr Williams), to whom I pay tribute...
Unfortunately, I have been asked for answers to 31 separate requests—I have written them down—and I have been allowed only seven minutes to respond, but I will do my very best.
Fundamentally, dairy matters deeply to the United Kingdom. The hon. Member for Ceredigion (Mr Williams), to whom I pay tribute...
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This pack contains relevant news items, press releases and parliamentary material, and links to further reading. For more detail, see Commons Library Briefing Paper 7564 UK Dairy Industry: Current Issues and Challenges |
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This pack contains relevant news items, press releases and parliamentary material, and links to further reading. For more detail, see Commons Library Briefing Paper 7564 UK Dairy Industry: Current Issues and Challenges |
The financial difficulties for farmers caused by low milk prices have put the spotlight on the UK dairy industry in recent years.
UK Dairy Industry Trends
Milk prices are generally at a very low level. This, as well as many other farming problems, prompted two farming crisis summits of the UK farming unions and Ministers (across the UK) in summer 2015 and a special meeting of EU Agriculture Ministers in September 2015.
A number of global commodity factors are in play for all milk producers including the on-going Russian trade embargo, a weak Euro, high milk supply and weak demand from Chinese buyers due to China seeking to become more self-sufficient in dairy products.
Estimates for the cost of milk production vary from 25-30 pence per litre (ppl). Contract prices for liquid milk in February 2016 ranged between 32.34 pence per litre (ppl) and 19.02 ppl with an average farmgate price of 25.57ppl (including farm bonus payments). Farmers who are directly supplying supermarkets or providing milk for niche markets are tending to get the highest prices.
However, the long term prospects for the industry are seen as positive with strong export growth.
Global demand for dairy products is expected to grow by around 2% per annum over the next 10 years with the increase in demand mainly coming from developing economies in Asia, South America and Eastern Europe/Russia.
House of Commons Library Briefing, UK Dairy Industry Statistics (January 2016) provides information on a range of dairy industry trends and intra-UK comparisons.
Support measures
Farming unions have accepted that there are no quick fixes but have regularly highlighted government action that can help. Dairy UK (Northern Ireland) and the Ulster Farmers’ Union have organised a major conference in May 2016 to explore the role of government policy in helping dairy businesses to manage margins.
The European Commission and UK Government have put in place measures to support the industry through the current financial difficulties (e.g. €500m EU dairy package, UK tax measures) as well as looking ahead to increase its resilience to future volatility (EU/UK work on futures markets).
These measures have been welcomed by the farming unions and the dairy industry but they would like to see the further action or increased efforts in the following areas:
This view is supported by the House of Commons Environment, Food and Rural Affairs Committee’s report on Farmgate Prices (March 2016) which follows up on its report on Dairy Prices (January 2015).[2]
The House of Lords EU Environment and Energy Sub-Committee is currently conducting an inquiry on price volatility – Responding to price volatility: creating more resilient agriculture.
The Dairy All Party Parliamentary Group has also produced a March 2016 report Putting Dairy Back on the Daily Menu highlighting the key role dairy plays in leading a healthy lifestyle and looks at how government can work more effectively with the UK dairy industry to ensure that dairy consumption is encouraged among all ages.
[1] NFU online, NFU takes farming issues to the Prime Minister, 16 March 2016
[2] EFRA Committee, Dairy prices, Fifth Report of Session 2014–15, 14 January 2015, HC 817
The financial difficulties for farmers caused by low milk prices have put the spotlight on the UK dairy industry in recent years.
UK Dairy Industry Trends
Milk prices are generally at a very low level. This, as well as many other farming problems, prompted two farming crisis summits of the UK farming unions...
We have an election coming and the call from the Labour party is now very different—it is very convenient. It has long called for the devolution of the tolls, but we were fearful that, as soon as the tolls were devolved, they would be used as a cash cow to support the income of the Welsh Government.
We have an election coming and the call from the Labour party is now very different—it is very convenient. It has long called for the devolution of the tolls, but we were fearful that, as soon as the tolls were devolved, they would be used as a cash cow to support the income of the Welsh Government.
I congratulate the Secretary of State and the Minister on their recent appointments. Labour Members look forward to working constructively with them, particularly on the new Wales Bill, whenever that may appear.
To clarify, in last month’s Budget the Chancellor made much of halving the tolls on the Severn crossings, but as we have since discovered that is not quite the bargain it appears to be. The 50% discount includes the 20% of VAT, which disappears anyway when the bridge reverts to public ownership, and of course businesses reclaim VAT. So instead of leaving businesses still paying thousands of pounds a year, why will not the Government do the right thing and scrap these tolls altogether?
This Finance Bill will go a long way to ensuring that there is no thumb on the scales that balance the interests of small businesses and multinational companies. In that sense, it is a Budget of direct redistribution, but there are ways of extending that principle further. The £9 billion...
This Finance Bill will go a long way to ensuring that there is no thumb on the scales that balance the interests of small businesses and multinational companies. In that sense, it is a Budget of direct redistribution, but there are ways of extending that principle further. The £9 billion...
My Lords, I welcome this opportunity to highlight concerns over the plight of minority faiths in India. Narendra Modi, leader of the nationalist BJP, won a landslide victory in the May 2015 Indian election, mainly on ostensibly economic issues, but after his election he has given increasing support to the...
My Lords, I welcome this opportunity to highlight concerns over the plight of minority faiths in India. Narendra Modi, leader of the nationalist BJP, won a landslide victory in the May 2015 Indian election, mainly on ostensibly economic issues, but after his election he has given increasing support to the...
My Lords, the noble Lord, Lord Porter, and the noble Baroness, Lady Hollis, are in agreement on this. They both oppose the fact that this levy will be solely on those authorities that have retained stock and a housing revenue account, and that it will be a very large sum...
My Lords, the noble Lord, Lord Porter, and the noble Baroness, Lady Hollis, are in agreement on this. They both oppose the fact that this levy will be solely on those authorities that have retained stock and a housing revenue account, and that it will be a very large sum...
I beg to move,
That this House has considered the contribution of the Scotch whisky industry to the UK economy.
It is a pleasure to serve under your chairmanship this afternoon, Mrs Moon. I am delighted to have secured this debate and to see so many of my colleagues present, particularly as...
I beg to move,
That this House has considered the contribution of the Scotch whisky industry to the UK economy.
It is a pleasure to serve under your chairmanship this afternoon, Mrs Moon. I am delighted to have secured this debate and to see so many of my colleagues present, particularly as...
Everyone here today understands that Scotch whisky is a huge player in the UK economy and overseas markets, and without the success of this industry Britain’s trade deficit of around £35 billion would be around 11% larger. This wonderfully popular product is the biggest net contributor to UK trade in...
Everyone here today understands that Scotch whisky is a huge player in the UK economy and overseas markets, and without the success of this industry Britain’s trade deficit of around £35 billion would be around 11% larger. This wonderfully popular product is the biggest net contributor to UK trade in...
My Lords, we are now deep into the debate on the implementation of the voluntary right to buy for housing association tenants. I did not feel able to add my name to the amendments in this group that seek to exclude some or all housing association tenancies from the grant...
My Lords, we are now deep into the debate on the implementation of the voluntary right to buy for housing association tenants. I did not feel able to add my name to the amendments in this group that seek to exclude some or all housing association tenancies from the grant...
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