HC Deb 23 January 1987 vol 108 c758W
Mr. D. E. Thomas

asked the Secretary of State for Wales what effects he expects the further cuts in milk production quota to have on the Welsh beef industry.

Mr. Nicholas Edwards

The further cuts in milk quotas agreed by the Council of Agriculture Ministers in December could lead to an increase in dairy culling over the next two years. The Commission has however allocated 435 million ecu to meet the market management costs of dealing with extra beef during this period.

Mr. D. E. Thomas

asked the Secretary of State for Wales what measures have been taken by the Government to ensure a balanced beef market in the future for Welsh farmers and to shield producers from the effects in other sectors.

Mr. Nicholas Edwards

The retention of the beef variable premium scheme, the devaluation of the green pound, and the increase in the maximum possible rate of payment under the Buckler cow premium scheme together will provide stability for the beef sector during the next two years as the balance between supply and demand improves. The next two years should see a substantial move towards lower intervention stocks and a more market-related level of production.