HC Deb 11 March 1999 vol 327 cc490-2
9. Mr. Hilton Dawson (Lancaster and Wyre)

How he intends to assist farmers to market high-quality local produce and develop co-operative food processing and added-value initiatives. [74087]

The Minister of State, Ministry of Agriculture, Fisheries and Food (Mr. Jeff Rooker)

The Department assists farmers to market their high value-added local produce through a range of financial and other measures. On Tuesday, the Department conducted a seminar on encouraging a partnership approach between organisations that are promoting farmers markets.

Mr. Dawson

May I welcome my hon. Friend's statement, and express my hope that the recent investigation into Milk Marque's activities will result in that organisation being able not only to continue in its present form but to develop processing activities? May I also draw his attention to the Wyre brunch—a splendid celebration of local produce—which will be held next Tuesday, 23 March, in Garstang? A range of activities at the brunch—which is supported by Myrescough college, the National Farmers Union, Wyre borough council and many other organisations—will bring together people in a celebration of fine local Wyre produce. Is my hon. Friend aware that young people from Pilling will be hanging on every word of his answer to my questions?

Mr. Rooker

Yes. Surely the answer is that, next week, everyone should go to Garstang.

Mr. Nigel Evans (Ribble Valley)

I shall do exactly that, as Garstang is a neighbour of my constituency. Further to the question asked by the hon. Member for Lancaster and Wyre (Mr. Dawson), will the Minister encourage the Secretary of State for Trade and Industry to make an early response to the Milk Marque inquiry? Last Friday, 16 farmers from my constituency visited me at my surgery. They are all members of Milk Marque, and all of them wish to remain members of it. Across the country, 16,000 farmers would like assistance to be provided to Milk Marque, so that they may participate in food processing—to ensure not only that their commitment to and investment in the dairy industry are rewarded, but that there is a future for other people in the industry.

Mr. Rooker

I cannot comment on the particular case. It is the fact, however, that United Kingdom producers do not control anywhere near as much of the food chain as producers in our European partner states. Milk Marque is an exception to that fact. We are trying to ensure—by encouraging farmers' collaborative and marque arrangements, producers' co-operatives and farmers markets—that farmers, who are the producers of the food, receive some of the added value in the food chain, so that all added value does not end up with the final retailer, which is the accusation against supermarkets.

Dr. Brian Iddon (Bolton, South-East)

In the Fylde and the West Lancashire plain—where the food is produced to feed the constituents of my hon. Friend the Member for Lancaster and Wyre (Mr. Dawson) and those of other hon. Members—there are many small growers who rely on people called produce merchants to transport goods from growers to retailers and wholesalers. The process adds costs to food that, preferably, should go to growers. Does my hon. Friend the Minister agree that, among other things, the Government should promote co-operation in achieving that aim?

Mr. Rooker

Yes, and we are doing that. We provide financial support, in the form of grant, to establish regional groups for speciality producers. Eligible groups, for the first five years after formation, may receive up to £12,000 annually. Although the sum is modest, all the pressure and impetus from the Department is directed at enabling producer groups to come together to reduce costs, so that they may retain and gain more of the added value of their produce.