Earlier this summer, we issued a consultation on having mandatory contracts in the dairy sector. That is something that I have long felt is important, since dairy farmers, perhaps more than any others, all too often are price takers. We will be considering that consultation and the responses we received, and we intend to bring forward legislation under the future agriculture Bill. I will of course be delighted to meet my hon. Friend’s constituent.

Farmers are being sold short on payments for their milk. That is destabilising the market and is not providing a fair price to farmers from processors. Please will the Secretary of State say what he plans to do to rectify this, and please will he have a meeting with one of my dairy farmers, Mr Andrew Birkle?

Healthy Start vouchers can be exchanged for fresh or frozen fruit and vegetables, plain cow’s milk and infant formula. These products are set out in legislation. The Healthy Start Scheme and Welfare Food (Miscellaneous Amendments) Regulations 2020 (SI 2020/267) expand this from 1 October 2020 to include pulses and canned fruit and vegetables, but not those to which fat, salt, sugar or flavouring have been added.

The Healthy Start scheme is kept under continuous review to ensure the products set out in legislation meet the aims of the scheme and the needs of families who use it.

The Government has no plans to bring forward legislative proposals on allergen labelling for toothpaste and other non-food items that contain milk protein.

Dairy farmers are crucial in ensuring that food supplies remain resilient in this difficult period. While the vast majority of Britain’s dairy farmers are largely unaffected, some have been impacted by the closure of the food service sector as a result of the lockdown measures taken in response to Covid-19. Between 5 and 10 per cent of total milk production goes to the food service trade. While there is no Government-backed scheme to reduce milk supply, we fully support industry efforts to voluntarily reduce milk production where necessary.

In addition to the wider steps the Government has taken to support businesses impacted by COVID-19, a statutory instrument laid before Parliament on 1 May temporarily relaxed some further elements of competition law making it easier for the dairy industry to collaborate to maximise production, processing and storage efficiency in order to avoid wastage and to ensure that as much product as possible can be processed into high quality dairy products. The SI is available at the following link.

http://www.legislation.gov.uk/uksi/2020/481/contents/made

We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.

The Government is working closely with our agriculture sectors to manage the impact of COVID-19 and is determined that our dairy sector will emerge from the current COVID-19 crisis with a sustainable future. While the vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price, between 5 and 10 per cent of total milk production goes to the service trade, and these farmers have been impacted by the significantly reduced demand following the closure of the food service sector.

To support the sector we have temporarily eased of 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.

Moreover, in recognition of the unprecedented challenges facing this sector on 7 May we announced a new fund to support those dairy farmers who have seen decreased demand due to the loss of the food service sector. Eligible dairy farmers in England who have lost more than 25% of their income over April and May due to coronavirus disruptions will be eligible for funding of up to £10,000 each, to cover 70% of their lost income during this qualifying period. This will enable these producers to continue to operate and sustain production capacity without impacts on animal welfare.

The Agriculture and Horticulture Development Board together with Dairy UK have launched a new £1 million campaign running over 12 weeks to drive an increase in the consumption of milk. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.

The dairy industry can also access various Government backed loan schemes. The COVID-19 Business Interruption Loans scheme is available to farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme, which will apply to businesses including those operating in agriculture, will ensure that the smallest businesses can access up to £50,000 loans.

In the longer term the Government is keen to see greater levels of collaboration between producers and we 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 anticipate launching the consultation later this year.

British food and drink are renowned around the world for its quality and integrity and we want consumers, including public service organisations, to be able to benefit from our nutritious dairy and other agricultural products. Respecting our World Trade Organization commitments on public procurement, central Government and its executive agencies in England are mandated to source produce that meets UK minimum production standards, as outlined in the "Government Buying Standards for Food and Catering”.

Defra is working closely with the dairy industry to manage the impact of COVID-19. Demand for milk and some dairy products has increased in supermarkets and the vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price. However, between 5 and 10 per cent of total milk production goes to the service trade, and these farmers have been impacted by the significantly reduced demand.

At the outset of the pandemic, the Government announced a number of emergency measures to support farmers, processors, and retailers. These include designating the food sector as critical to the response, with those working in the production, processing, sale, distribution or delivery of food categorised as “key workers” and granting derogations on drivers’ hours limitations.

In addition, to support milk producers, the Government announced on 17 April a temporary easing of 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.

The Agriculture and Horticulture Development Board (AHDB) together with Dairy UK are launching a new £1 million campaign to drive consumption of milk and other dairy products. Running over 12 weeks, the campaign will highlight the role that milk and other dairy products play in supporting moments of personal connection during times of crisis. Defra and the devolved administrations are jointly contributing towards the financing of this campaign.

The dairy industry can access various Government backed loan schemes. The COVID-19 Business Interruption Loans scheme is available to farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme, which will apply to businesses including those operating in agriculture, will ensure that the smallest businesses can access up to £50,000 loans.

In recognition of the unprecedented challenges facing this sector, on 6 May 2020, Defra announced a new fund to help support those dairy farmers who have seen decreased demand due to the loss of the food service sector. The new fund will provide support for those most in need. Eligible dairy farmers in England will be entitled to up to £10,000 each, to cover 70% of their lost income during April and May to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.

Public intervention for skimmed milk powder and butter continues to be available. Industry can sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. This provides a floor price for dairy products. From 7 May, UK dairy processors are also eligible to apply for EU funded private storage aid in respect of skimmed milk powder, butter and cheese.

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.

Defra is working very closely with both farmer and processor representatives through this period of disruption to manage the impact on the dairy supply chain of Covid-19 including holding a number of roundtable discussions with the sector. Farmers supplying milk to processors that sell into the food service sector have seen a significant reduction in demand and we have taken several steps to support those affected.

In order to support affected farmers, we have eased some elements of competition law to make it easier for processors to come together to maximise production and processing and storage efficiency until shops, restaurants and pubs are able to open again. This SI was laid before Parliament on 1 May and applies retrospectively from 1 April 2020. The Agriculture and Horticulture Development Board and Dairy UK have agreed to work with farmers and processors to help industry take advantage of these easements. The SI is available at the following link:

http://www.legislation.gov.uk/uksi/2020/481/contents/made

The Government's Covid-19 Business Interruption Loans scheme is available to the dairy industry and where this is appropriate for this business, I urge farm businesses to access the loans that are available to support them in this difficult period. Defra has held urgent discussions with the major banks to ensure they understand that farmers, milk buyers and milk processors are eligible for this scheme and we are working to increase awareness across the dairy industry. HMT have also now announced the new Bounce Back Loan scheme which will apply to businesses operating in agriculture. This will ensure that the smallest businesses can access up to £50,000 loans. The Government will provide lenders with a 100% guarantee on each loan, to give lenders the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.

The Government also took a number of early emergency steps to support dairy farmers and the wider sector. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers' hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.

The existing public intervention scheme for skimmed milk powder and butter continues to be available. This provides a floor price for dairy products, supporting the dairy industry to sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. The European Commission has this week approved the opening of additional measures for private storage aid which UK processors will be able to access should they chose to.

We will continue to engage closely with farmer and processor representatives to ensure that we support them throughout this challenging period.

Defra is working closely with the dairy industry to manage the impact of Covid-19. Demand for milk and some dairy products has increased in supermarkets and the vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price. However, between 5 and 10 per cent of total milk production goes to the service trade, and these farmers have been impacted by the significantly reduced demand.

In order to support affected farmers, we have eased some elements of competition law to make it easier for processors to come together to maximise production and processing and storage efficiency until shops, restaurants and pubs are able to open again. This SI will be laid shortly and will apply retrospectively from the 1 April 2020. We have asked the Agriculture and Horticulture Development Board and Dairy UK to work with farmers and processors to help industry take advantage of these easements.

Public intervention for skimmed milk powder and butter also continues to be available. Industry can sell skimmed milk powder and butter into public intervention when the price they would receive on the open market falls below the intervention price. This provides a floor price for dairy products.

Furthermore, the dairy industry can access various Government backed loan schemes. The Covid-19 Business Interruption Loans scheme is available to farmers, milk buyers and milk processors. In addition, the new Bounce Back Loan scheme, which will apply to businesses operating in agriculture, will ensure that the smallest businesses can access up to £50,000 loans. The government will provide lenders of this latter scheme with a 100% guarantee on each loan, to provide them with the confidence they need to support the smallest businesses in the country. We will also cover the first 12 months of interest payments and fees charged to the business by the lender.

We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.

Defra is working closely with the dairy industry to manage the impact of Covid-19. Though demand for milk and some dairy products has increased in supermarkets, farmers supplying milk to processors that sell into the food service sector have seen a significant reduction in demand.

Between 5 and 10% of total milk production goes to the service trade and there is therefore a small proportion of milk production that currently has no home. The vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price. In order to support affected farmers, we have eased some elements of competition law to make it easier for processors 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.

We have asked the Agriculture and Horticulture Development Board (which supports the interests of dairy farmers) and Dairy UK (which represents the processors) to work with farmers and processors to ensure that the industry can benefit from these easements. We stand ready to support them throughout this pandemic. 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.

The Government took a number of early emergency steps to support dairy farmers and the wider sector. These included designating employees in the food sector as key workers and temporarily relaxing the normal rules on drivers’ hours, enabling the sector to keep supply chains running, including deliveries from farm gate to processors.

The Government’s Covid-19 Business Interruption Loans scheme is available to the dairy industry. Defra has held urgent discussions with the major banks to ensure they understand that farmers, milk buyers and milk processors are eligible for this scheme and communications are being prepared to increase awareness across the dairy industry.

We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.

We want all milk producers to get a fair price for their produce and are committed to tackling the unfairness that can exist in the dairy supply chain.

Through the Government’s Agriculture Bill, introduced on 12 September, we will launch a range of initiatives to improve the position of milk producers. We will introduce and enforce statutory codes of practice to address unfair trading practices which can occur between milk producers and purchasers.

We remain committed to a full consultation on dairy contracts to take account of the range of stakeholder views. We have worked closely with officials in all Devolved Administrations to develop this consultation and are committed to creating a statutory code that is sustainable and effective in each nation.

Defra is working closely with the dairy industry to manage the impact of Covid-19. Though demand for milk and some dairy products has increased in supermarkets, farmers supplying milk to processors that sell into the food service sector have seen a significant reduction in demand.

About 5 per cent of total milk production goes to the service trade and there is therefore a small proportion of milk production that currently has no home. The vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price. In order to support affected farmers, we have set aside some elements of competition law to make it easier for processors to come together and voluntarily work out how to ease production down in order to create the space in the market for excess milk and to support a recovery in the spot price.

We have asked the Agriculture and Horticulture Development Board (which supports the interests of dairy farmers) and Dairy UK (which represents the processors) to coordinate a proposal and discussions are already underway. We stand ready to support them throughout this pandemic. 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.

The Government’s Covid-19 Business Interruption Loans scheme is available to the dairy industry. Defra has held urgent discussions with the major banks to ensure they understand that farmers, milk buyers and milk processors are eligible for this scheme and communications are being prepared to increase awareness across the dairy industry.

We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.

Defra is working closely with the dairy industry to manage the impact of Covid-19. Though demand for milk and some dairy products has increased in supermarkets, farmers supplying milk to processors that sell into the food service sector have seen a significant reduction in demand.

About 5 per cent of total milk production goes to the service trade and there is therefore a small proportion of milk production that currently has no home. The vast majority of Britain’s dairy farmers continue to supply their contracts at the usual price. In order to support affected farmers, we have set aside some elements of competition law to make it easier for processors to come together and voluntarily work out how to ease production down in order to create the space in the market for excess milk and to support a recovery in the spot price.

We have asked the Agriculture and Horticulture Development Board (which supports the interests of dairy farmers) and Dairy UK (which represents the processors) to coordinate a proposal and discussions are already underway. We stand ready to support them throughout this pandemic. 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.

The Government’s Covid-19 Business Interruption Loans scheme is available to the dairy industry. Defra has held urgent discussions with the major banks to ensure they understand that farmers, milk buyers and milk processors are eligible for this scheme and communications are being prepared to increase awareness across the dairy industry.

We will continue to engage closely with representatives from all parts of the dairy supply chain to support the sector throughout this challenging period.

If the evidence shows that industry has not made enough progress on reducing sugar, the Government may extend the SDIL to sugary milk drinks.