8. Mr. Alan W. WilliamsTo ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the imports and exports of dairy products. [16104]
§ Mr. BaldryOver the past 10 years, the value of UK dairy exports has increased twice as much as imports and, in real terms, the UK's trade deficit in dairy products has been cut by 26 per cent.
Mr. WilliamsIn my constituency, Andrew Dare, the chief executive of Milk Marque, recently pointed out that the value per tonne of imported dairy products is 40 per cent. greater than the goods that we export. What can the Government and the dairy industry do to boost added value in the dairy industry so that we move upmarket— to such items as yoghurts, desserts and fine cheeses—for import displacement and to improve that export performance?
§ Mr. BaldryThat is exactly what is happening. I think that the hon. Gentleman has somehow got the situation the wrong way around. Since deregulation, we are seeing high-value milk products for export; there is no longer an incentive for processors to put milk into such low-value products as skim milk or into butter for intervention. We are seeing a very substantial increase in the value of our exports, which have increased by some 126 per cent. What is happening is what the hon. Gentleman wants to happen.
§ Mr. TredinnickDoes my hon. Friend agree that the reason why Britain is not 100 per cent self-sufficient in milk quotas can be directly attributed to the failure of the previous Labour Government? The base that was set in 1981 was influenced by the depression caused by that former Labour Government.
§ Mr. BaldryThe Opposition might not like it, but the reason why we are not self-sufficient in milk products is that, during the late 1970s, the agrimonetary policy that was followed by the former Labour Government disadvantaged this country. That policy meant that, when milk quotas were introduced, this country was not self-sufficient.