§ Sir George YoungTo ask the Minister of Agriculture, Fisheries and Food what assessment he has made of the impact of the current crisis facing the livestock industry on its medium-term future. [21375]
231W
§ Mr. RookerThe beef sector is in long-term structural surplus and this has been exacerbated by consumers' concern over BSE. The majority of UK producers have had negative returns on beef in 1997 and clearly cannot endure these for many years together. There is thus an urgent need for reform of the sector to bring supply more nearly into line with demand and for some restructuring of the sector in the UK and Europe more generally to improve competitiveness. The Government will be pressing for fundamental reform of the Beef Regime in forthcoming negotiations. Although sheep prices have fallen recently, they were firm for much of 1997. We will be seeking to ensure that the sheep sector is taken into consideration in negotiations on reform in related areas.