HC Deb 22 May 1975 vol 892 cc1598-9
11. Mr. Spence

asked the Minister of Agriculture, Fisheries and Food how many dairy farmers have (a) received and (b) applied for the EEC grants available for changing from milk to beef production; how much has been paid out; and whether he intends to continue with this policy.

19. Mr. Freud

asked the Minister of Agriculture, Fisheries and Food how many applications were received for entry to the Dairy Herd Conversion Scheme; and if he will quantify the reduction to date, and the potential reduction by 30th June 1975 in the size of the United Kingdom dairy herd.

Mr. Strang

When the Dairy Herd Conversion Scheme closed to applicants on 31st December 1974, 8,724 farmers had applied in respect of 324,306 dairy cows. However, 4,630 applicants have so far taken advantage of this scheme and received grants, of which 50 per cent. is recoverable from FEOGA funds. It is not possible to estimate the effect of the scheme on the national dairy herd, as many of the better milk animals are now to be found in other herds.

Mr. Spence

I thank the Minister for his answer, each point of which I have carefully noted. In the light of the experience of the Dairy Herd Conversion Scheme and of the present consumption patterns of liquid milk by the consumer, how, and to what extent, have the consumer and the farmer benefited from this scheme?

Mr. Strang

This scheme was introduced in October 1973. The hon. Gentleman will appreciate that it is in the interests of the industry to strike the right balance between beef production and milk production.

Mr. Freud

How does the Minister see this helping to solve the cyclical problem of the beef producers?

Mr. Strang

This does not help to solve the cyclical problem of the beef producers. The breakthrough achieved by my right hon. Friend in Brussels in obtaining a variable premium—which gives, in effect, a guaranteed price, which we used to have—will help.

Mr. Flannery

Will the Minister explain the way in which the EEC grants for switching from dairy farming to beef will make the beef mountain higher and higher, so that we can sell it more cheaply to the Soviet Union?

Mr. Strang

My right hon. Friend made it clear that the Government are opposed to the sale of subsidised food to Russia.

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