HC Deb 09 December 1998 vol 322 cc239-40W
Mr. Sayeed

To ask the Minister of Agriculture, Fisheries and Food what plans the Government have to give financial assistance to pig producers. [62321]

Mr. Rooker

The EU pigmeat regime is very light and contains no provision for direct aids to producers of the sort introduced for beef and sheep farmers. Paying these as a state aid would contravene European law. Moreover, we generally oppose state aid schemes in the pig sector because they can distort trade, interfere with the market and risk prolonging a crisis.

The pig sector is benefiting from a number of market related measures which has been agreed within the EU and supported by the Government. These have been worth almost £100 million in market support across the EU this year. Measures include the re-introduction of refunds on exports of fresh and frozen carcases and cuts of pigmeat; two further increases in those refunds—including a 75 per cent. increase on exports to Russia; and the introduction of an aids to private storage scheme.

The Government continue to fund strategic R&D of assistance to the pig industry to the tune of £2.5 million per annum. An increasing proportion of this spend is on joint projects with the industry, a clear sign that the work we are funding is of value.

Mr. Sayeed

To ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the British pig industry; and what plans he has to assist pig farmers to increase their trade within the European Union. [62322]

Mr. Rooker

Like its counterparts in the rest of the EU, the British pig industry is going through a difficult time at present, with market prices well below the cost of production. The crisis is due mainly to over-production, because of an exaggerated producer response to the BSE crisis and to a reduction in supply due to outbreaks of classical swine fever (CSF) on mainland Europe, principally in the Netherlands. This has led to a distorted version of the classic pig cycle, with the position being exacerbated by the strong pound, high production in the USA and a reduction in world demand, e.g. in Russia and the Far East.

The Meat and Livestock Commission (MLC) and Food from Britain have helped the British pig industry to establish a healthy export trade in pork and pork products with other EU countries. In 1997, over 200,000 tonnes were exported to the EU (up some 20 per cent. on 1996) and this figure is likely to be exceeded in 1998.

For their part, Government Ministers have directed their efforts at raising the profile of British pigmeat in the domestic market, particularly the catering market. We have spearheaded a campaign aimed at the catering and food service sector with the objective of increasing the use of pigmeat products in a sector which takes 30 per cent. of the pigmeat market.

In addition, the major retailers have given voluntary undertakings that all their own-label fresh pork, bacon, ham, sausages and pork pies will come from stall and tether and MBM free systems. In addition, they will not sell imported fresh pork processed or packaged in the UK, under a British label. These are major advances which will be welcomed by the British pig industry.