HC Deb 29 January 2004 vol 417 cc486-7W
Mr. Hoyle

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the future economic viability of dairy farming in Lancashire. [149937]

Alun Michael

The Government understand the problems that low farmgate prices for milk have caused farmers in Lancashire and in the rest of the UK, and the challenges the dairy sector will face adjusting to the new conditions that will be created by a reformed CAP. While the Government recognise these difficulties, they also believes that the UK dairy sector has a sustainable future and, in line with their "Strategy for Sustainable Farming and Food", will work alongside the industry to facilitate and support its development. The UK has a comparative advantage in terms of climate, farm efficiency and size over many of its competitors. If the dairy supply chain can work together to maximise this potential and address some of the difficulties it faces, then there is no reason why it should not succeed.

Sir Nicholas Winterton

To ask the Secretary of State for Environment, Food and Rural Affairs what the average income of dairy farmers in the United Kingdom was in each of the last 10 years for which figures are available. [148696]

Alun Michael

The average net farm income for dairy farmers in the UK is shown in the table. Net farm income is defined as the return to the principal farmer and spouse for their manual and managerial labour and on the tenant type capital of the business.

Forecast of dairy incomes in England for the year ending February 2004 will be published on 29 January 2004.

Net income perform
£
Current In real terms at 2002–03 prices
1991–92 19,900 26,200
1992–93 27,000 34,500
1993–94 31,100 39,000
1994–95 27,200 33,200
1995–96 33,900 40,000
1996–97 28,000 32,300
1997–98 18,100 20,200
1998–99 10,700 11,600
1999–2000 9,000 9,700
2000–01 13,900 14,400
2001–02 27,900 28,400
2002–03 12,300 12,300

Source:

Farm Business Surveys

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