§ Mr. HoyleTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on dairy farming in Lancashire. [77602]
§ Mr. MorleyIn Lancashire, in common with the rest of the country, the sustainability of many dairy farming enterprises has been adversely affected by low farmgate milk prices. The reasons for these low prices are complex, but include high levels of production earlier in the year combined with the effects of low world prices for dairy commodities. The average farmgate price of milk has recovered from its seasonal low in May, but it is still too low for many dairy farmers to be able to maintain the level of investment required to sustain their businesses.
The prices negotiated between farmers and purchasers, or indeed processors and retailers, are private commercial matters in which the Government cannot get involved. Nevertheless, I do welcome the recent price rises announced by major retailers and dairy processors and hope that these will help alleviate some of the difficulties faced by dairy farmers. The Government can influence the environment in which price negotiations take place through the mechanisms of the dairy CAP and, during the period of lowest prices, we actively supported measures taken in Brussels to support Community markets and encourage exports.