The Government share farmers’ concerns over the low farmgate price of milk and Ministers meet regularly with both representatives of the diary industry and the NFU. However, price negotiations between producers and processors, are a private commercial matter in which Government cannot get involved, as long as competition rules are respected.
[holding answer 4 July 2006]: The following table shows exports from the UK and imports into the UK of liquid milk and milk powder for 2003 to 2005.
Trade Type Tonnes £000 Tonnes £000 Tonnes £000 Exports Liquid Milk 198,464 48,130 258,101 58,404 499,481 100,479 Milk Powder 172,745 212,035 185,647 219,429 99,828 114,924 Imports Liquid Milk 37,755 13,641 56,170 13,886 48,116 16,313 Milk Powder 45,319 44,975 67,898 52,170 76,897 65,184 Source: H M Revenue and Customs Data prepared by Trade statistics, Agricultural Statistics and Analysis Division, DEFRA 2005 data is subject to amendments
[holding answer 4 July 2006]: It is not possible to provide overseas trade estimates for the different milk products in liquid milk equivalent. It is a complex calculation which can lead to double counting as different components of liquid milk can be used to manufacture different products. The following table shows the UK trade in milk products in tonnage and value for 2003 to 2005.
Trade Description Tonnes £000 Tonnes £000 Tonnes £000 Imports Cheese 315,622 743,898 334,654 810,598 352,411 850,668 Yoghurt 193,255 137,888 181,110 139,889 154,200 126,651 Butter 118,387 281,102 113,694 278,869 128,620 309,407 Buttermilk 56,602 48,609 87,409 68,181 111,127 96,253 Ice cream 76,779 129,736 89,304 142,482 82,317 127,658 Condensed milk 19,628 17,770 25,134 22,913 32,911 33,221 Whey 26,827 18,715 25,029 16,071 22,303 17,293 Other 1,334 1,716 1,707 2,146 2,079 3,391 Imports total 808,435 1,379,434 858,043 1,481,149 885,968 1,564,543 Exports Cheese 89,795 179,415 93,286 201,560 96,073 219,079 Whey 42,647 12,140 56,167 16,812 75,416 27,287 Ice cream 40,847 47,680 53,219 50,464 50,515 46,763 Butter 44,366 74,952 34,793 59,235 45,147 73,216 Yoghurt 9,755 14,831 12,033 21,359 22,317 24,457 Buttermilk 11,659 6,719 13,056 5,166 20,456 6,328 Condensed milk 20,471 15,046 17,767 10,756 3,726 6,470 Other 834 918 11,221 24,456 162 689 Exports total 260,374 351,701 291,542 389,807 313,813 404,289 Source: H M Revenue and Customs Data prepared by Trade statistics, Agricultural Statistics and Analysis Division, DEFRA 2005 data is subject to amendments
Price negotiations between producers and processors, are a private commercial matter in which Government cannot get involved provided competition rules are respected.
Dairy farmers are currently facing a number of challenges, including farmgate prices. In line with the ‘Strategy for Sustainable Farming and Food’, the Government are working alongside the industry to facilitate and support its future development. For example, the Dairy Supply Chain Forum is providing information to help the dairy industry make informed decisions about its future in a world with much freer trade and lower prices
[holding answer 4 July 2006]: The information requested is as follows.
(a) The table shows monthly weighted average farm gate milk prices in pence per litre for the United Kingdom.
The average prices are calculated from monthly surveys of milk purchasers conducted in England and Wales by Defra, in Scotland by SEERAD and in Northern Ireland by DARD.
The farm gate price is the average price received by producers, net of delivery charges. No deduction has been made for superlevy.
(b) Prices paid by retailers to milk purchases are not available.
(c) Prices are derived from the Expenditure and Food Survey and are for the top five shops (in terms of value of food and drink purchased) as identified in this survey. Prior to 2001-02 this information was collected as part of the National Food Survey and cannot be broken down by retail outlet in this way.
Supermarket price (liquid wholemilk) Farmgate price (including bonus payments) 2001-02 43.79 19.31 2002-03 44.98 16.86 2003-04 47.37 18.27 2004-051 48.00 18.39 1 Pence per litre.