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Written question asked by Ian Liddell-Grainger (Conservative) on Monday, 27 April 2020, in the House of Commons. It was due for an answer on Wednesday, 29 April 2020. It was answered by Baroness Prentis of Banbury (Conservative) on Tuesday, 5 May 2020 on behalf of the Department for Environment, Food and Rural Affairs.


Milk: Competition

Question

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential merits of long-term competition rules derogation for milk processors in non-aligned dairy farms for (a) facilitating trading cooperative and (b) building resilience in the milk processing and supply industry.

Answer

In order to support milk producers, we have temporarily eased some elements of competition law to make it easier for the dairy industry to come together to maximise production, processing and storage efficiency and ensure as much product as possible can be processed into high quality dairy products. This approach will allow the market for milk to adjust to the change in demand for milk while allowing production to be restored when shops, restaurants and pubs are able to open again. Exempted activities have been developed in conjunction with the dairy industry.

Beyond this immediate and temporary measure, the Government plans to launch a range of initiatives to improve the position of milk producers. Government is keen to see greater levels of collaboration between producers and will continue to support farmers who want to harness the benefits of working together. Our Agriculture Bill includes powers to introduce a new domestic system for recognising producer organisations, which will be better tailored to the requirements of UK producers.

The Bill also includes powers to introduce and enforce statutory codes of practice to address unfair trading practices which can occur between milk producers and purchasers. We will carry out a full consultation on dairy contracts to take account of the range of stakeholder views and hope to launch the consultation later this year.


Secondary information

Type
Written question
Reference
40513
Session
2019-21
Subjects
Competition Exemptions Milk
Link
View this Written question on www.parliament.uk