Environment, Food & Rural Affairs Committee
HC 817, Fifth Report of Session 2014-15 - Report, Together with Formal Minutes Relating to the Report
- House of Commons - Environment, Food and Rural Affairs Committee
- TSO (The Stationery Office)
'Dairy Prices (HC 817)' examines the UK Government's reactions to fluctuations in milk prices around the world. Worldwide pressure on milk prices has resulted from a combination of rising supply and falling demand, partly because of reduced demand from China and a Russian trade ban with the EU. Rapid and wide fluctuations in milk price bring pressure to bear on the UK dairy industry, and farmers have been leaving it in significant numbers in recent years.
While there is no single solution to the problems created by these rapid changes in milk prices, it is incumbent on the Government, and the Department for Environment, Food and Rural Affairs (DEFRA) in particular, to promote UK dairy produce domestically and in growing export markets. Action to encourage the spread of Producer Organisations, a review of the EU intervention price for milk and clearer regulation on the labelling of dairy products could all assist a struggling industry.
The voluntary code of best practice in the dairy industry, introduced after similar price difficulties in 2012, has been adopted by about 85 per cent of dairy producers and welcomed in improving matters as far as it goes. Closer attention is required, however, to the sharpness and frequency of price changes in the dairy market, which affect investment and financial planning.
The Groceries Code Adjudicator's role, concerning the relationship between direct suppliers and major retailers, is too restricted to be of assistance to the vast majority of dairy producers, as they are indirect suppliers.
|Format||Paperback||Published||20 Jan 2015|
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