§ Andrew GeorgeTo ask the Secretary of State for Environment, Food and Rural Affairs how many dairy cows there were in each of the past five years; and what the average size of dairy herds was in each year. [135746]
§ Mr. BradshawData for dairy cows are collected annually from the June agricultural and horticultural census as a total.
For the last five years the figures are:
Dairycows and dairy herd size 1998 to 2002 Dairy cows Average dairy herd size 1998 1,642,636 83.9 1999 1,659,210 88.5 2000 1,575,320 89.8 2001 1,490,224 91.6 2002 1,462,155 87.9 Notes 1. Dairy herd—holdings with dairy cows producing milk 2. Dairy cows—all cows and heifers that have calved 3. 1998 and 1999 figures refer to main holding only. 2000 onwards—main and minor holdings. Source: June agricultural census—England
§ Andrew GeorgeTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact on dairy farmers of the(a) contractual and (b) price setting behaviour of the largest five UK supermarket chains. [135774]
§ Mr. BradshawWe have made no specific assessment of the impact on dairy farmers of the contractual and price setting behaviour of the largest five UK supermarket chains. However, a detailed investigation into the supply of groceries from supermarkets was carried out by the Competition Commission in 1999–2000. The Commission concluded that, taking all matters into consideration, the industry was broadly competitive. It did, however, identify three situations where competition was distorted and operates against the public interest. These concerned the relationship between supermarkets and their suppliers and certain pricing practices. The Commission's report, which was published in October 2000, can be found at http:// www.competition-commission.org. uk/inquiries/ completed/2000/index.htm
§ Mr. HayesTo ask the Secretary of State for Environment, Food and Rural Affairs what estimate she has made of the likely effect of reform of the Common Agricultural Policy on future prices per litre of milk. [134379]
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§ Mr. BradshawWhen fully implemented, the reforms agreed in June in Luxembourg will reduce the support price for butter by 10 per cent. more than the 15 per cent. reduction originally agreed for both butter and skimmed milk powder under Agenda 2000 (ie a 25 per cent. cut in the support price for butter). If farmgate prices were to fall to the same extent, the price per litre might be reduced by a further 0.95p beyond the impact of Agenda 2000. However, we share the European Commission's assessment that farmgate prices are unlikely to settle at this level: indeed, the overall package of compensation agreed reflects this. (Producers will be compensated through an increase in the level of direct payments of a further 0.74pp1 over and above the compensation originally agreed in Agenda 2000.) The figures quoted above are based on an exchange rate of 70p/euro.
Our economic assessment indicates that decoupling of direct payments from production will have a beneficial effect on farm incomes; we would expect the main dairy-specific price impact to be in relation to the value of milk quota.