§ Mr. Nicholas BennettTo ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the current state of the cereal sector.
§ Mr. RyderThe 1988 cereals harvest in the United Kingdom was, at 20.9 million tonnes, the lowest since 1981. Nevertheless, the surplus of wheat and barley in 1988–89, including stocks in intervention stores, is estimated at over 5.5 million tonnes. It is expected that most of this surplus will be exported before the end of the season, substantially reducing intervention stocks. Prices have generally remained firm. In the European Community production was estimated by the Commission in November at 162.5 million tonnes, 1.6 per cent. above the stabiliser of 160 million tonnes. As a result intervention prices will be reduced by 3 per cent. For the 1989–90 marketing year, and the definitive rate of the additional co-responsibility levy for 1988–89 has been set at 1.6 per cent. of the wheat intervention price; additional levy paid at a higher rate is being partially repaid.