HC Deb 18 July 2002 vol 389 cc479-80W
Dr. Julian Lewis

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the effects of the break-up of Milk Marque. [69622]

Mr. Morley

There has been no formal assessment; it would be difficult to separate the effects of this action from other influences on the market. However, since Milk Marque decided to break itself up, its successors (Zenith, Axis Milk and Milklink) have proved to be dynamic players in the sector.

Dr. Julian Lewis

To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement about the sustainability of UK milk production at current price levels. [69621]

Mr. Morley

For many, the current prices being achieved are clearly unsustainable in the longer term. They are back to the levels seen in 2000. The reasons for this appear many and varied but one—the unusually high early season peak of production that put a strain on processing capacity—should now be behind us. The recent strengthening of the euro against sterling should also have a beneficial effect once it has worked through.