News story

15th March 2004

MP Speaks Out for Local Farmers over Supermarket "Rip-Off"

Northavon MP Steve Webb has spoken out in the House of Commons to demand a better deal for local dairy farmers. The MP used a question to Agriculture ministers to point out the big gap between the price that farmers get for their milk and the price charged to customers. Agriculture Minister Alun Michael was forced to admit that the supermarket price of milk is roughly two and a half times the amount that farmers receive when their milk leaves the farm. Steve Webb said that farmers were angry that the price they got for their milk barely covered their costs of production and that consumers would also want more of the price that they paid to go to support local farmers.

Following up his question, Steve Webb suggested to the Minister that supermarkets might be forced to display a sign next to their dairy cabinets revealing how much of the retail price of milk and dairy products was actually going to farmers. But minister Alun Michael opposed this suggestion and said that these were commercial matters between supermarkets, processors and producers and were ones “..in which the Government cannot get involved”.

Commenting after the exchanges, Steve Webb said:

“I often hear the frustrations of local farmers about the very poor price that they receive for their milk, and I am sure that local people who buy milk would like to see more of the price that they pay going to local farmers. The Government has admitted that there is a huge gap between the farm-gate price of milk and the supermarket price, but seem to think that there is nothing wrong in this. The Government is being complacent about this issue, and it is local farmers who are suffering”.

Click here to read the exchange between Steve Webb and the Minister in the House of Commons