§ The Earl of Caithnessasked Her Majesty's Government:
What measures they are taking to ensure price stability for farmers selling their stock in future so that the price received is not lower than before the start of the foot and mouth outbreak. [HL1700]
§ Baroness HaymanThe Government are precluded by EU rules from taking direct action to support market prices. The measures in place to control the spread of foot and mouth disease impose significant additional costs on the meat processing supply chain and some of these costs will inevitably be passed back to producers. Even when more normal marketing conditions return, the closure of export markets is likely to result in significant over-supply and weak demand. In that situation, the Government will consider pressing the European Commission to introduce private storage aid for sheepmeat and (possibly) for beef and pigmeat as well. Under current market conditions, however, we and the Commission judge that such aid would not prove effective.