§ Andrew GeorgeTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the Milk Development Council Report, "Dairy Supply Chain Margins 2003–04"; and whether she has accepted the key findings in respect of farm gate and retail price movements and differentials. [189080]
§ Alun MichaelThe lack of transparency regarding prices and margins in the dairy supply chain was an issue highlighted in the recent EFRA committee report on milk pricing. We are still considering the Milk Development Council report and assessing the contribution its recommendations could make to addressing these issues.
§ Andrew GeorgeTo ask the Secretary of State for Environment, Food and Rural Affairs for what reasons London Economics was commissioned to produce a report on the impact of supermarkets on farm gate prices; and how much this report cost her Department. [189081]
§ Alun MichaelDefra commissioned this research in order to examine the evidence for a decline in the share of the retail price of food received by farmers and to determine the factors that could account for this. Special attention was to be given to the possible influence of supermarkets. The study was to place the UK experience within the context of other EU member states.
The report was commissioned at the time when the Competition Commission was investigating four grocery multiples bidding for Safeway and in a wider context of concerns about the declining share of farm prices as a proportion of retail spending on food.
The selection of London Economics was the result of a competitive process, based on an invitation to a number of consultancies and academics to submit proposals for this project. London Economics was paid £96,375, excluding VAT, for the report.
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