Pigs

HC Deb 05 August 1976 vol 916 cc2106-9

13. Mr. Hicks

asked the Minister of Agriculture, Fisheries and Food if he is satisfied with the state of the pig sector.

19. Mr. Nicholas Winterton

asked the Minister of Agriculture, Fisheries and Food whether he is satisfied that the returns earned by pig producers are sufficient to pay for the costs of production.

Mr. Bishop

Pig producers have enjoyed a sustained period of firm prices with good profits and the national herd has been expanding. Prices fell sharply during the hot weather but are now showing signs of recovery. There is every prospect that they should improve during the rest of the year.

Mr. Hicks

Will the Minister confirm that since the publication of the Government's White Paper "Food from Our Own Resources" the United Kingdom production of pigmeat has fallen? Does he agree that action is required? Why will he not seek to give the pig sector a selective devaluation of the green pound or an adjustment of MCA payments?

Mr. Bishop

Price falls are normal at this time of year and they were more pronounced in June and July because of the hot weather. The Meat and Livestock Commission forecasts a return to firm price levels by the end of the year. In April last the census results showed an increase in the United Kingdom pig-breeding herd of about 4 per cent. compared with April 1975. Within these totals the number of gilts in pig increased over the same period by 37 per cent., from 97,000 to 133,000 head. It is estimated that the size of the herd may increase by a further 6 per cent. by the end of the year. This shows the market confidence. Indeed, a recent NFU memorandum published in July warned the industry about over-confidence in the pig sector.

The hon. Gentleman referred to the green pound. We have made clear on many occasions that we have to take into account the interests of the country as a whole as well as of the pig industry. Any changes will have to take account of the interests of the producer, the processor and the consumer. I believe that there is a case to be made for a more neutral method of calculating MCA payments in this sector, and we are examining that possibility.

Mr. Speaker

May I ask for replies to be as reasonably short as supplementary questions?

Mr. Watkinson

Will my hon. Friend accept that the pig industry has suffered considerably at the hands of the Danish industry because of the subsidy that the Danish industry receives? Can anything be done to give our pig producers some advantage in this market?

Mr. Bishop

My right hon. Friend has met representatives of the pigmeat processing industry, and various suggestions are being pursued. I repeat that I think a case may be made for a more neutral method of calculating MCA payments in this sector. I note what my hon. Friend said about Denmark.

Mr. Winterton

Is the Minister aware that the British Pig Producers Federation and the NFU have produced records which show that the pig industry is making a loss? Will he secure an adjustment of the MCA payments to ensure that our industry is placed on a similar footing to the Dutch and Danish industries which are undermining our industry?

Mr. Bishop

I accept what the hon. Gentleman said, but I have explained the problems caused by a change in value of the green pound. My right hon. Friend has made four changes in the value of the green pound over the last two years. That shows that we are sensitive to this problem. Difficulties arise in taking action on the pigmeat sector alone. My right hon. Friend will be pursuing these matters in Brussels and elsewhere in the near future.

Mr. Ward

Will my hon. Friend have regard to the large increase in the cost of feeding stuff for pigs, particularly of soya-bean meal, and bear it in mind in his review of the bottom price?

Mr. Bishop

I can give that assurance.

Mr. Pym

Does not the hon. Gentleman agree that the pig breeders and processors are easily the hardest hit by the misaligned green pound? Does he not regard it as a serious matter that home producers take a much smaller share of the home market than formerly? Should not the aim of Government policy be to increase the share of the home market enjoyed by home producers?

Mr. Bishop

We are pursuing the policy laid down in our White Paper. As I have said on many occasions, we bear in mind the adjustment of the green pound as and when required. I assure the right hon. Gentleman that we are sensitive to the problems of the industry, which at present are having a far greater effect on processors than on producers. All these points are being taken into account.