§ 1. Mr. Hicksasked the Minister of Agriculture, Fisheries and Food what proportion of beef produced in the United Kingdom is produced as a by-product of dairy producers.
§ The Minister of State for Agriculture, Fisheries and Food (Mr. E. S. Bishop)No precise measurement is possible. It is variously estimated that some 60 per cent. of United Kingdom beef and veal production comes from the domestic dairy herd.
§ Mr. HicksDoes not that information confirm the need to encourage further expansion of our dairy herd? Furthermore, is the hon. Gentleman aware that we import dairy products equivalent to the milk yield of 2½ million dairy cows? Does he accept that the proposed increase of 0.8p per gallon to milk producers falls well short of the financial incentive required?
§ Mr. BishopThe hon. Gentleman should not overlook the fact that the Government have taken vigorous action to halt the decline in milk production. 1828 Since taking office only a year ago we have increased the guaranteed price by about 32 per cent., and milk producers should benefit from the increased calf prices. We believe that these are good incentives for the future.
§ Mr. Peter MillsHas the hon. Gentleman forgotten that it takes nine months to produce a calf from a cow? Has he forgotten that it is two and a half years before a heifer produces any milk? What is needed in the industry is a long-term plan so that milk can be produced for the consumer and to the benefit of the farmer.
§ Mr. BishopThe hon. Gentleman may be aware that my right hon. Friend is soon to publish proposals for long-term plans for the industry. The decline in milk production which occurred in 1974 seems to have been checked. In January of this year total sales were virtually at the same level as they were in January of last year, and a preliminary estimate for February indicates that sales were 2 per cent. higher than in 1974.
§ Mr. HardyIs it not the case that the almost dramatic shift from beef to dairy production took place while the Conservative Government were in office and that they neglected the situation for a long time until just before the February election last year?
Mr. BishospMy hon. Friend will be aware that the beef régime which my right hon. Friend has managed to secure will help to restore confidence not only in the dairy sector but also in the beef sector.