Mr. Jim Callaghanasked the Minister of Agriculture, Fisheries and Food (1) if he will make a statement concerning the disposal of structurally surplus agricultural products arising within the European Economic Community;
(2) if he will guarantee that future European Economic Community food surpluses will be used for the benefit of member countries.
§ Mr. Buchanan-SmithIt is our aim that priority be given to disposal of surpluses within the Community, where this is possible. The Community operates a number of schemes which subsidise the consumption or processing within the Community of products in surplus in the following sectors: milk products, sugar, fruit and vegetables and wine. But given current supply and demand relationships and the marginal costs of different methods of surplus disposal, subsidies on export sales are likely to remain a necessary part of the Community's policy on disposal of surpluses.