Written question asked by Jonathan Edwards (Plaid Cymru) on Tuesday, 21 February 2012, in the House of Commons. It was due for an answer on Thursday, 23 February 2012. It was answered by James Paice (Conservative) on Tuesday, 28 February 2012 on behalf of the Department for Environment, Food and Rural Affairs.

Milk

Question: To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the likely effect of the EU Dairy Package on the milk industry in (a) England, (b) Wales, (c) Northern Ireland and (d) Scotland; and what outcome she sought in discussions with her EU counterparts on the Dairy Package.

Answer: We have remained in close contact with representatives from across the UK dairy industry and with the devolved Administrations throughout the negotiation of the EU Dairy Package. We believe the likely effects will be similar across the UK.We sought only beneficial outcomes which would enable the competitiveness of our industry and avoid any barriers to trade. We sought to minimise burdens on industry and Government and to avoid increased EU spending. While we recognise that the package does not do everything quite as we would have liked, we welcome those elements which can be beneficial to the supply chain and we are now able to support it.In particular we believe that the package should increase the bargaining power of producers if they form recognised producer organisations which can then negotiate the sale to purchasers of their milk including the price. Although we will consult on whether to make contracts for the sale of raw milk mandatory in line with the package if it is adopted, we do not expect that that would have any significant effect in the UK. This is why we strongly encourage the industry to adopt as soon as possible its own voluntary code of practice which should enable broader and quicker improvement to contractual relationships between producers and purchasers (milk processors).

Secondary information