§ Mr. Alfred Morrisasked the Minister of Agriculture, Fisheries and Food what representations he has received from the National Farmers' Union on the effect of rising feed costs for livestock producers; what reply he has made; what action he is taking; and if he will make a statement.
§ Mr. GodberI have had discussions with the President of the National Farmers' Union on the animal feed situation and discussions have been held between officials of the Agricultural Departments and representatives of the farmers' unions. The following is the statement that I made on 8th October which summarises the Government's views
Officials of the Agricultural Departments have had a series of meetings with representatives of the Farmers' Union to consider the present animal feed situation and its likely 95W effect on the production of the main commodities concerned. I have carefully studied their reports and discussed them with the President of the National Farmers' Union, Sir Henry Plumb, who was representing all the United Kingdom farmers' unions.I recognise that the present high grain prices, which have persisted in spite of the encouraging reports of harvests throughout the Northern Hemisphere, are bound to create difficulties for the producers of conversion products and particularly of pigs and milk.As a result of the Government's policies over the last three years, the income of the agricultural industry as a whole is rising and the general level of profitability is good. The Government have to consider the problems of particular sectors of the industry against this general background, and in the light of the restraint which is having to be applied to profits in all sectors of the economy.As fresh food has, of necessity, been excluded from the strict controls imposed on manufacturing industry and on incomes throughout the country, it is inevitable that in some areas farmers have benefited from higher prices of the food they produce. While farming is nowadays much more specialised than it used to be and therefore the benefits have fallen unevenly, the Government has to look at the whole farming picture against the severe and continuing restraints imposed on the rest of the community.Milk producers have had the benefits of two good years and their long-term prospects are excellent. In the short term they will need to ensure that their feed plans produce the best and most economic use of feed, and I have asked the Agricultural Development and Advisory Service to give particular attention to this aspect in the advice they give. I hope, however, that milk producers will not alter their long-term plans: they can certainly look forward to a profitable future.As far as pigs are concerned, the present market prices are well above the level of the guarantee and are rising. It is true for pigs also that until recently profit margins have been good. Many pig producers are none the less clearly under considerable short-term pressure. But again in the longer term all the prospects are good for further development and expansion. I hope, therefore, that producers will be ready to maintain breeding stocks in the present situation, in spite of the short-term disadvantages. I have no doubt that it will be to their advantage to do so.We are in what is clearly a temporary situation. There is every reason to feel confident about the future. It would be quite wrong for either the Government or the farmers to be deflected from their true aims by the present difficulties. The interests of the farming industry and of the country as a whole require that everyone should maintain his confidence in the general health and prospects of the industry and refuse to allow present temporary disadvantages and difficulties to obscure the real and certain prospect of future prosperity.The Government feel that the right time to consider the prospects and problems of the 96W farming industry is in the normal way, at the next Annual Review. It is then that we shall consider the whole long-and short-term position of the industry with all the facts before us. We shall be able to determine then what needs to be done to ensure the future prosperity and continuing expansion of the farming industry. We are, of course, already committed at the Annual Review to raise prices further towards Community levels for each commodity for which Community arrangements exist. This, of course, includes milk and pigs. I am sure that the industry has every reason to maintain its confidence, that it will not be deflected by today's temporary problems, and that it will respond to the challenge in the same way that it has responded to others in the past.