§ Mr. MossTo ask the Minister of Agriculture, Fisheries and Food what estimate he has made of the impact the reduced cereal crop as a result of drought in North America will have on grain storage levels and cereal prices in 1988–89 in both the European Community countries as a whole and the United Kingdom particularly.
§ Mr. Donald ThompsonIt is too early to make a realistic assessment of the effect of the drought in the USA on stock levels and cereal prices in 1988–89 in the European Community and the United Kingdom. Stocks and prices will be primarily influenced by the size of the EC and United Kingdom harvests and by the EC's export policy; the operation of the CAP acts to insulate the EC's grain market from much of the impact of world market fluctuations.
§ Mr. MossTo ask the Minister of Agriculture, Fisheries and Food what is the anticipated reduction in the production of cereals in the United Kingdom, in the light of current European Community proposals on prices and stabilisers.
§ Mr. Donald ThompsonIt is not possible to make such an estimate since the level of cereals production in any year is primarily determined by the weather.