Pig Industry (Hansard, 21 April 1983)

§ 4. Mr. Haselhurst
asked the Minister of Agriculture, Fisheries and Food what recent representations he has received about the state of the pig industry; and if he will make a statement.

§ 20. Sir Michael Shaw
asked the Minister of Agriculture, Fisheries and Food if he will now take further steps to improve the profitability of pig production.

§ 22. Mr. Ralph Howell
asked the Minister of Agriculture, Fisheries and Food when he last had a meeting with the president of the National Farmers Union; and if they discussed the subject of profitability in the pig industry.

§ Mr. Peter Walker
I have been in close contact with all concerned with the situation in the pig industry.
As my right hon. Friend informed the House on Monday, we have successfully negotiated in Brussels substantial increases in export refunds, amounting to 60 per cent. on whole carcases and main cuts. This, I know, will substantially improve the opportunities for pigmeat exports. I have also decided to relieve the meat industry of the cost of veterinary inspections in those plants which are eligible to produce meat for export, by meeting these from public funds, with offsetting savings in other areas of Government expenditure. Details of these arrangements will be announced shortly.
We have therefore succeeded in making the two changes the industry told me were of most importance in helping it to improve its competitive position in overseas markets.

§ Mr. Haselhurst
I thank my right hon. Friend for that announcement, which I am sure will be most welcome to the hard-pressed pig industry. To what extent will it relieve those pig farmers who have heen in the most difficulty at this low point of the cycle?

§ Mr. Walker
I candidly admit that the pig industry faces a period of difficulty. Last year, production substantially increased and we have had to dispose of that increased production. At the request of the pig industry, slaughterings are taking place under the Aujeszky's disease eradication scheme. Therefore, I cannot say with any certainty that the pig industry will face easier times in the immediate future. However, I am sure that the crisis that the pig industry is now going through will ultimately result in its maintaining a more permanent and important export position. In the past that position has been enjoyed by the Dutch and the Danes and it would give much greater long-term stability to our pig industry.

§ Sir Michael Shaw
Is my right Friend aware of the widespread pleasure that his statement will give? Is he further aware that there is widespread feeling in the industry, and certainly in my constituency, that the unfair burden placed on pig breeders because of the extra cost of feedstuffs in this country is to be deplored and that it must be put right before profitability can be restored?

§ Mr. Walker
In my statement on the meeting of the Agriculture Council I shall refer to that in a way that might be helpful to the industry.

§ Sir Peter Mills
Will my right hon. Friend bear in mind two further points? Although I congratulate him on what he has dome, will he urge producers to show restraint? With 22.7 pigs per year per sow, it is ridiculous to overproduce. Will my right hon. Friend redouble his efforts to ensure that curers do something about an improvement in British bacon standards?

§ Mr. Walker
As my hon. Friend knows, there was a substantial increase in production last year. In the early part of 1982 our pig producers were enjoying good prices and very reasonable profits. The immediate result of that was a very speedy and substantial increase in production.
I hope that the charter bacon scheme, which is getting under way and having considerable influence, will begin to improve the marketing performance of British bacon in our markets.

Mr. Mark Hughes
I welcome the Minister's statement on veterinary and other matters, but will he accept that unless the incorporation of subsidised rates of feedstuffs is thought desirable and necessary in this corn year, pig producers in this country will still have major difficulties?

§ Mr. Walker
As the hon. Gentleman is aware, there are considerable problems with the incorporation process. As I have said, I shall mention that later in my statement this afternoon.

§ Mr. Hudson Davies
I welcome what the Minister has said. However, to revert to the rather cursorily treated question of Aujeszky's disease, does not the Minister feel in retrospect that the levy represents a substantial inposition on the industry? When it is quite clear that the disease can be eradicated, to the benefit of all, should not the Government contribute to this exercise?

§ Mr. Walker
Anyone who occupied my office will know that a whole range of diseases affect British agriculture. If they were considered objectively, Aujeszky's disease would not be given top priority. The pig industry made a request to me that it would like to fund an eradication programme if I could provide the cost of the services for fulfilling that programme. I agreed to it on that basis. If more money were available and I were asked to put more Government money into disease eradication, I would consider a whole range of options apart from the one under debate.