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Milk: Prices

Volume 468: debated on Wednesday 28 November 2007

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on recent trends in farm-gate milk prices. (167854)

[holding answer 26 November 2007]: Farm gate prices are at their highest levels since 1996. Concerns about animal disease notwithstanding, the situation in the dairy sector is considerably more positive than it has been for some time.

While commodity prices appear to have peaked and there is likely to be a consequential effect on farm gate prices in due course, given increasing demand for dairy products, prices are not expected to fall to earlier levels at least in the short to medium term.