Norman Baker MP Member of Parliament for Lewes constituency
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Lewes,
East Sussex,
BN7 2LJ.
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Lewes MP calls for food trade inspector to help Sussex's struggling dairy farmers
Lewes MP and Lib Dem Shadow Rural Affairs Secretary, Norman Baker, has called on the government to introduce a new food trade inspector into the Office of Fair Trading (OFT) so that Sussex farmers can finally get a fair price for their pint. Norman’s call follows a House of Commons debate on milk prices in which Lib Dem MPs drew attention to the plight of farmers who are struggling to sustain their businesses in the face of high maintenance costs and supermarket bullying.
Speaking during the debate, Norman said:
"The relationship of farmgate prices to retail prices is absurd, and shows what the NFU correctly calls a dysfunctional supply chain. The supermarkets are making increased profits, while the process to compete for supermarket tenders is driving down prices to farmers. As a result, the dairy industry is threatened and we will end up sucking in more and more imports."
In response, Rural Affairs Minister, Jim Knight MP, accepted that that farm-gate prices are "too low for many to be able to sustain their businesses", and expressed concern about the number of farmers that are leaving the industry. However he refused to consider introducing a regulator, citing the substantial differences in production costs between farmers as a barrier to this.
Commenting after the debate, Norman said:
"It is an absolute travesty that this country has all the necessary conditions needed to provide a secure and financially sound dairy industry, yet rather than take the action that is needed to achieve this, the government seems content to simply stand by and watch farmers’ businesses go to the wall week after week.
"Over the last ten years the average price paid at the farm gate across England and Wales has fallen by about 25%, yet the supermarket price has stayed roughly the same and supermarkets' profits have soared. Farmers cannot be expected to continue this ruinous relationship, particularly when they currently face additional financial pressures such as being made to shoulder the cost of replacing expensive machinery.
"The government cannot allow the current situation to continue any longer, where supermarkets are creaming off the profits whilst farmers go to the wall. They must now introduce fair trade inspectors in the Office of Fair Trading rather than simply relying on the toothless and ineffective code of practice."