§ Mrs. BrowningTo ask the Minister of Agriculture, Fisheries and Food what impact he expects the agreed Agenda 2000 package to have on(a) consumer prices for milk and (b) other dairy products in the United Kingdom. [77453]
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§ Mr. Rooker[holding answer 18 March 1999]: The provisional agreement by the EU Agriculture Council on 11 March to the Agenda 2000 CAP reform package will result in a 15% reduction in support prices for butter and skimmed milk powder, over a period of three years beginning in 2003. As a consequence, the aggregate value of UK milk consumption, measured at farmgate prices, is estimated to fall by some £400 million a year by the end of the period. This will mean that consumers will benefit from lower retail prices for milk and dairy products than would otherwise obtain. If all the savings are passed to consumers, the effect will be approximately equivalent to 4% of the retail price of a pint of liquid milk, and 8% of the retail price of butter.
§ Mrs. BrowningTo ask the Minister of Agriculture, Fisheries and Food what proportion of the retail price for milk in the United Kingdom was accounted for by the raw milk price in January(a) 1997, (b) 1998, and (c) 1999. [77451]
§ Mr. Rooker[holding answer 18 March 1999]: The farmgate price of milk accounted for 38.1 per cent. of the retail price in January 1997, 32.7 per cent. in January 1998 and 32.1 per cent. in January 1999. The percentages in January 1998 and 1999 are much the same as in the early 1990s. The real price spread—the difference between the retail price and the farmgate price adjusted for inflation—fell by 2 per cent. between January 1997 and January 1999.