Dairy farmers are facing a difficult period of market adjustment. The new fair dealing regulations ensure fairness and greater transparency, creating a more resilient dairy supply chain that supports farmers and strengthens national food security.
Happy Christmas to you and your staff, Mr Speaker, and to everyone here.
Despite the agricultural supply chain adjudicator having a remit over fair dealings for milk prices, it appears that contracts are essentially a one-way street, with milk processors dictating prices. A constituent of mine, a dairy farmer, has recently been notified of a 2p per litre cut, which equates to a loss of £11,000 and makes it unviable for him to continue. What steps is the Minister taking to urgently redress that imbalance? Farmers are scared to speak out because it will have an impact on their contract.
I understand and empathise with the experience of the hon. Lady’s constituent. A global glut of milk is driving prices down; prices had gone up because there was an undersupply, so there are market corrections going on. The Fair Dealing Obligations (Milk) Regulations 2024 now apply to all dairy supply contracts. If her constituent feels that he is being unfairly dealt with, he can contact the agricultural supply chain adjudicator, who was appointed to carry out enforcement of the fair dealing obligation regulations. He can now do so because those regulations have been in place since July of this year.
Merry Christmas to you and your fantastic staff, Mr Speaker.
I note that the hon. Member for Clacton (Nigel Farage) obviously has better things to do than turn up and speak for farmers. I want to speak up for dairy tenant farmers. Tenant farmers manage a third of all farmland in England. As well as running her dairy farm, Rachel at Low Springs farm in Baildon also runs Baildon farmers market and is the director of the Great Yorkshire show. Will the Minister set out how this Labour Government are implementing the recommendations of Baroness Rock’s review to help tenant dairy farmers such as Rachel?
My hon. Friend raises the important point that a third of all farmland in England is managed by tenant farmers, so a fair and sustainable tenant farming sector relies on positive landlord, tenant and adviser relationships. To help deliver that, we have appointed Alan Laidlaw as England’s first commissioner for the tenant farming sector. We will continue to look particularly at how tenant farming agreements are working, to see whether there is any need for reform in the future.
Merry Christmas to you, Mr Speaker, and to your tip-top team.
Dumfries and Galloway is the land of milk and slurry. We lack not for grass and dairy cattle, but we do lack for people. We are heavily reliant on immigrants to milk the cattle, so the loss of occupation code 5111 from the immigration salary list is causing huge concern. Can my farmers count on the Secretary of State to speak to the Home Office and head off what appears to be a looming crisis?
We have a close relationship with the Home Office, and I have old contacts there too. I promise that we keep a close eye on these things and look at what we can do about emerging shortages. Given that we want to reduce the number of people who come into this country and that we want to create job opportunities for people here, it is important that the sector looks at how it can train people locally to do those jobs.
I had the opportunity to meet a dairy farmer in my constituency, who explained just how financially challenging things have been. They have diversified, they have a farm shop and they do raw milk vending, but it is simply not enough for them to make a profit on other activities to subsidise their milk production. Will the Minister outline how dairy farmers, who are critical to a vibrant food and drink sector, will be supported in the long term?
The global glut of milk has led to instability in price, which is difficult as many of our food prices are reliant on global markets. We have put in place the Fair Dealing Obligations (Milk) Regulations 2024, and we will be keeping a close eye on the sector to see what else we can do to ensure that we continue to support it.