MPs back plans to help dairy farmers

Shropshire's MPs are giving their support to a new watchdog which will make sure supermarkets treat suppliers fairly.

They hope the Grocery Code Adjudicator Bill which is currently going through Parliament will be the key to getting a better deal for the county's beleaguered dairy farmers. But county MPs say there are other things that need to be done to help the industry.

North Shropshire MP Owen Paterson agreed farmers in his constituency were facing a severe problem, with lower prices outweighed by rising milk production costs.

But, he said, the Government planned to cut paperwork, introduce grants to help farmers be more competitive, and backed a code of practice between milk processors and producers which should be introduced as soon as possible.

And Mr Paterson said the Grocery Code Adjudicator Bill would protect suppliers against retailers passing on excessive risks or unexpected costs.

He added: "Farmers want an equal and fair contract with processors. Currently the processor can end the contract immediately but the farmer must give six months' notice. A reduction to three months or less would be fairer.

"In north Shropshire we are part of the largest milk field in Europe and dairy farming is a vital part of the local economy, so many of my constituents are hugely affected by this latest crisis.

"I have worked closely with local farmers for many years and will continue to work with them and their representatives to achieve a fair deal in the long term."

Shrewsbury's MP Daniel Kawczynski, who set up the All Party Parliamentary Group for Dairy Farming, also backed the adjudicator Bill.

"The cost of almost everything in this country is regulated, but not the price of milk – and it's my view that the extraordinary buying power of the supermarkets has trampled upon the agricultural industry, squeezing every last drop of life out of it.

"A regulator with teeth, which can investigate monopolies, look into complaints and which has the power to fine, would help the industry recover."

Mr Kawczynski also backed the limited badger cull as a way of protecting herds from the 'devastating' cost of Bovine TB, which will see the slaughter of 2,000 Shropshire cattle this year.

"I'm also calling an emergency summit in the House of Commons on Monday and I hope that by getting farmers' representatives and milk buyers together we can discuss ways in which we can divert this crisis."

Mr Kawczynski said it was important that local businesses bought from local suppliers wherever possible, and he urged farmers to look at emerging markets in China, Brazil and the Middle East.

Wrekin MP Mark Pritchard, another founding member of the parliamentary dairy farmers' group, backed the adjudicator plan and said: "It is completely wrong that farmers are once again being squeezed."

He added: "I will continue working closely with my parliamentary colleagues to ensure that Shropshire's dairy farmers' views are fully represented to industry, government, and to Parliament.

"I have concerns about the rise of super-dairy farms in other parts of the UK. Such farms are a threat to retaining local skills, keeping and developing quality herds as well as being bad for the environment through increased transport distances.

"Super-farms are also less animal welfare friendly. This is not good for the cattle or for keeping the right levels of quality.

"Dairy farmers are not asking for the earth – but a fair price for their produce. Local and national suppliers should work with local farmers to reach an agreeable settlement which is both equitable and profitable for all."

Ludlow Philip Dunne MP said he shared the 'disbelief' of farmers threatened with price cuts of up to two pence a litre from August 1, despite rising production costs. "The latest price cuts imposed on some dairy farmers show how important it is for the industry to agree on a voluntary Code of Practice on contracts which the Government is encouraging."

He added: "In my view the dairy business has to work for everyone, so dairy farmers get a fair deal, processors and retailers are able to compete in the market, and consumers can get top quality British produce at a price they can afford."

Mr Dunne said he also looked forward to the introduction of the grocery adjudicator. He added: "The current problem is with supermarkets and the other big retailers that operate in the middle ground, whose processors have continued to invest in new bottling plant and undercut each other for contracts instead of attacking growing markets both overseas and in import substitution.

"With Mullers in Market Drayton now controlling Robert Wiseman, one of the major dairies in the country, I am seeking a meeting to understand why they are cutting what they pay and encourage fair prices for Shropshire dairy farmers."

Telford MP David Wright said: "I represent the most urban parliamentary seat in Shropshire, but it's obvious that the town and countryside are interconnected."

Mr Wright, who has been working with the NFU locally, said he feared the latest price cuts would drive more farmers out of business, and he backed the grocery adjudicator and fairer pricing by retailers.

"As one of my constituents said to me recently, we are in danger of a situation where in a few years from now a Select Committee will be asking questions as to why a country with an ideal dairy cattle climate is importing milk from other nations, which in most cases do not have the same welfare and production standards as the UK. She was right and we need to take action now.

"We have to make it clear to retailers, processing companies and consumers that this can't go on. I support a voluntary code of practice to ensure a fair approach to milk contracts. If this can't be achieved then we will have to regulate."

He added: "I know that retailers like to offer cheap milk, but the danger is that if farmers are forced out of the industry then we will all pay higher prices in the future."

Montgomeryshire MP Glyn Davies criticised the 'outrageous behaviour' by some processors and their supermarket partners and called for the reversal price cuts introduced since April.

He said: "It is shockingly unfair for huge businesses, which processors and supermarkets are, to ride roughshod over thousands of small businesses, which dairy farmers are.

"I have secured a speaking slot in the House of Commons next week, where I will try to increase public awareness of this example of market failure and big business exploitation.

"I also believe we as MPs should make clear that unless there is respect for the Grocery Code Adjudicator we will give it legal enforcement powers.

"We should also make contact with supermarkets in our constituencies to ask where their milk is sourced. It's clear these processors care only about their profits, so we must try to hit them where it hurts them, by encouraging shoppers to buy their milk from retailers who ensure a sustainable price is paid to our farmers."