Sir Patrick Cormack FSA

Conservative Party | Staffordshire South

Question on the Dairy Industry

Sir Patrick Cormack (South Staffordshire) (Con): Is the Minister aware that dairy farmers in general, and in South Staffordshire in particular, will be bewildered and distressed by the mind-boggling complacency of his answer? Will he think again about the answer that he gave to the hon. Member for Meirionnydd Nant Conwy (Mr. Llwyd), who asked not for intervention but for a commitment?

Barry Gardiner: I am distressed that the hon. Gentleman, for whom I have the highest regard, thinks that I am being complacent in my response to the House; that is certainly not the case. I recognise—as do this ministerial team, the Government and the whole House—that dairy farmers have been through a very difficult period, and that they are facing extremely strong challenges from all the new demands that will be placed on them in the years to come. None the less, those are things that we have quite properly sought to help with, in the way that I have just suggested to the hon. Member for Meirionnydd Nant Conwy (Mr. Llwyd). I believe that that shows a commitment. The Government have tried to help the sector to become more efficient and to realise the benefits of value added and niche marketing.

We have a particular problem in the United Kingdom. Unlike our competitors, we consume 51 per cent. of our milk in liquid form. In France milk goes into cheese, yoghurt and other value-added products, which allows a better price to be obtained. However, there are signs that the world commodities market for skimmed milk and whole milk powder is improving. Indeed, there is now a shortage. I should have expected the hon. Gentleman to welcome the fact that, for the first time, export support from the European Union has been set at zero.