HC Deb 14 May 1969 vol 783 cc1383-5
11. Mr. Monro

asked the Minister of Agriculture, Fisheries and Food what increase he now estimates will take place in the dairy herd this year, following the Government's announcement in November on the expansion of the industry.

Mr. Cledwyn Hughes

The March, 1969, census results for England and Wales showed an increase of 101,000 dairy cows compared with March, 1968. The numbers of heifers in calf are higher than a year ago, and the indications are that the expansion will continue.

Mr. Monro

If the number of dairy cows is increasing but if, at the same time, the consumption of liquid milk is falling, what does the right hon. Gentleman intend to do with the surplus of milk unless he introduces severe import control of dairy produce?

Mr. Hughes

As the House knows, milk production this spring has been affected by poor weather conditions. It has not been rising at the expected rate. To the extent that any reduction in the pool price results from an increase in the dairy herd for beef purposes, this will be taken into account at the 1970 Annual Price Review. Hon. Members will be interested to hear that the Milk Marketing Board for Scotland expects the average pool price to increase by ¼d. per gallon.

Mr. Stodart

Does the right hon. Gentleman agree with the advice given by his right hon. Friend the Secretary of State for Scotland, that it is no use giving incentives to farmers to produce more milk unless one can drink the liquid milk that is produced? Does he agree with that philosophy, particularly bearing in mind the import-saving potential, notably in butter and cheese, of this industry?

Mr. Hughes

The important thing is to see that the amount of milk produced meets a given demand at a particular time. That is why farmers should be assisted in the regulation of the market, not only in the production of milk for liquid consumption but in the production of milk products as well.

13. Mr. Brewis

asked the Minister of Agriculture, Fisheries and Food what further proposals he has for increasing the British dairy industry's share of the home market.

Mr. Cledwyn Hughes

The measures taken by the Government at successive Reviews have resulted in an expansion in the dairy herd and home production that in addition to supplying all our liquid milk requirements, enables us to meet a substantial part of the increasing demand for milk products.

At the same time, we have taken measures to increase and improve stability in the home market.

Mr. Brewis

I thank the right hon. Gentleman for that Answer. Does he agree that the British industry has a very disappointing percentage of its own market in dairy produce? Has he any further proposals for reducing the amount of cheese and skim milk powder coming into this country?

Mr. Hughes

I agree that there are problems in relation to the milk products market. However, when one considers the situation in this country and the situation across the world in relation to milk products, one realises that we are doing rather well.

To answer the hon. Gentleman's question about further measures, he will know that we have achieved a voluntary restraint agreement covering cheese with our major suppliers and that we have cut back imports of butter. We are regulating the British market reasonably well, but I agree that the situation needs to be watched constantly.

Mr. Godber

Would not the right hon. Gentleman agree that there is a great deal of disappointment among farmers generally at his not having been able to complete his negotiations in relation to cheese? He mentioned our major suppliers. Does not he acknowledge that some of our minor suppliers in Europe have increased their supplies to this country considerably and that he has not so far announced any effective restrictions on those increases? Will he make a statement about that?

Mr. Hughes

The right hon. Gentleman is exaggerating when he says that large-scale supplies are coming from our minor suppliers. [HON. MEMBERS: "No."] That is not the position. It was important for us first to get agreement with our major suppliers. We are now in the process of negotiating with the minor suppliers; and we hope to conclude these negotiations soon.

Mr. Alfred Morris

Is it not a fact that there is even greater disappointment among Common Market countries about the levy system as it applies to butter?

Mr. Hughes

I indicated, without specifying any other country, that there is considerable concern in the developed countries across the world over the milk products situation.