§ 22. Mr. Spenceasked the Minister of Agriculture, Fisheries and Food how much of the 7.7p per gallon of milk recently awarded to dairy farmers is by way of retrospective payment for costs incurred; up to what date such retrospection was calculated; on what date the 7.7p payment will terminate; what will take its place; and if he will make a statement.
§ Mr. BishopThe recent increase of 7.7p per gallon in the producer price is intended to meet increased production costs over the period to March 1975 and it is being paid on production in the months of October 1974 to March 1975. The guaranteed price for 1975–76 will be determined, as usual, in the light of the conclusions reached during the 1975 annual review.
§ 43. Mr. Peter Morrisonasked the Minister of Agriculture, Fisheries and Food what is the present situation with regard to supplies of liquid milk; and if he will make a statement.
§ Mr. BishopProduction of milk in the United Kingdom in the 12 months ended September 1974 totalled some 2,898 million gallons of which 1,676 million gallons were sold for liquid consumption. Although there has been an increase in liquid consumption and some reduction in supplies, home production should continue to be sufficient to meet liquid demand in full.
§ Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food (1) in view of the decline in the dairy herd, what steps he proposes to take to reverse this trend.
546W(2) In view of the number of milk factories in the South-West of England and the shortage of supplies of milk to these factories, what steps he is taking to encourage future milk production in the South-West of England.
§ Mr. BishopThe Government are committed to the expansion of milk production throughout the United Kingdom. The measures that have been adopted, in particular, the recent increase of over £100 million in dairy farmers' returns and the new support arrangements in the beef sector provide a sound basis for this expansion.