Written question asked by Ann Winterton (Conservative) on Tuesday, 18 December 2001, in the House of Commons. It was due for an answer on Wednesday, 9 January 2002. It was answered by Elliot Morley (Labour) on Wednesday, 9 January 2002 on behalf of the Department for Environment, Food and Rural Affairs.

Dept for Environment Food and Rural Affairs

Question: To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the impact of the worldwide slump in skim milk powder consumption on the UK milk producing industry; and if she will make a statement on recent trends in milk prices.

Answer: Mrs. Ann Winterton: To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact of the worldwide slump in skimmed milk powder consumption on the UK milk producing industry; and if she will make a statement on recent trends in milk prices. [25253] Mr. Morley: The fall in world demand for skimmed milk powder has depressed prices. Low demand in the UK coupled with low prices could lead to an increase in public intervention. That is why the Government have supported moves by the Commission to stimulate markets both at home and abroad. The producer price for milk reflects the position in the market and, therefore, has recently shown a downward trend following a very sharp recovery compared to a year earlier. The action already taken may help arrest this trend but the price will ultimately be determined by supply and demand.

Secondary information

Type: Written question
Reference: 377 c908W;377 c912W; 25253
Session: 2001-02
Subjects: Consumption Dairy farming Exports Prices Milk Dried milk Skimmed milk
Link: View this Written question on www.publications.parliament.uk