HC Deb 14 May 1969 vol 783 cc1394-6
27. Mr. Scott-Hopkins

asked the Minister of Agriculture, Fisheries and Food if he will further review the profitability of beef rearing and fattening in the United Kingdom with a view to promoting increased production from farms, in view of the expected shortfall in foreign supplies.

Mr. Hoy

The profitability of beef rearing and fattening was fully taken into account during the recent Annual Review, when substantial encouragement was given to cattle production. It is too soon to judge what effect recent Government decisions will have on beef imports, but there is no reason to expect any significant shortfall in total supplies.

Mr. Scott-Hopkins

Is there not bound to be a cut-back in the supplies coming into this country? Do not all reports from the beef-rearing areas show that the measures taken in the Price Review just will not produce the increased production and the expansion that the hon. Gentleman wants, because the measures simply were not good enough and there is not sufficient profitability to provide the capital required for this expansion?

Mr. Hoy

I said that the falls would not be significant. The effect of the Price Review has been the opposite of what the hon. Gentleman has just said.

Mr. Farr

Is the hon. Gentleman aware that the cost of producing fat cattle has never been higher than it is at present? What is he doing about it? What attention is he paying in particular to the problems that those who fatten on grass have to contend with?

Mr. Hoy

The lesson to be drawn from that is that the industry is so confident that it is paying higher prices than it has done previously.

28. Mr. Scott-Hopkins

asked the Minister of Agriculture, Fisheries and Food if he will take steps to facilitate an increase in the supply of beef-type calves for fattening coming from the dairy herd in Great Britain.

Mr. Hoy

We already do a great deal, by advice and financial incentives, to encourage dairy farmers to breed calves suitable for beef. I am sure they will have taken note of the increase in the guaranteed price for fat cattle at this year's Annual Review and are planning to meet the resulting demand for good rearing calves.

Mr. Scott-Hopkins

Have not the figures for beef-type bulls at artificial insemination centres declined? Is not the reason for this that beef fattening farmers simply will not be able to make a sufficient profit from fattening, so the demand is slackening off?

Mr. Hoy

I cannot at this time give the answer to the first part of the hon. Gentleman's supplementary question. If he is sufficiently interested, I shall be only too happy to give him the reply.

Mr. Hazell

Has not the increased price for fattening cattle caused the price of calves to rise, thus directly benefiting the farmers?

Mr. Hoy

That is what I hoped I had conveyed in my answer to a previous supplementary question.