Speech by The Rt Hon Jeff Rooker at the Dairy UK conference - 19 September 2006
1. Good afternoon. I have seen agriculture from the view of a devolved minister and now a Defra minister.
2. Defra has been taking stock, and considering ways to refresh its direction and future priorities now there is a new team in place.
3. Welcome opportunity to speak today – as there are further significant changes and challenges for Department and stakeholders ahead.
Future CAP reform
4. Dairy industry has faced a degree of uncertainty about the future (e.g. milk prices, production and costs) and further Common Agricultural Policy reform.
5. Clear that environment in which milk producers and processors operate has changed and will change further.
6. Further CAP reform is inevitable, and necessary for the future of farming.
7. CAP is currently an inefficient way to address the needs of rural areas, is not the best way to help farmers compete. Subsidies have been very damaging for the environment in some parts of Europe.
8. Recognise the changes industry has already been through since 2003. Further major change is inevitable (World Trade Organisation outcome, review of CAP in 2008 and review of whole EU budget in 2008/9). Need to discuss what the best policy solutions are now. It will be too late once the changes are in place. UK’s paper “A Vision for the Common Agricultural Policy” is designed to stimulate this debate.
9. Not proposing to abolish the CAP (EU needs a common policy structure for agriculture just as much as a common market in goods, services and jobs) nor advocating radical reform overnight (this vision is for 10-15 years), but if the EU is to use its budget to maximum benefit for sustainable growth, then radical change is needed.
10. UK values the agriculture and food industry as much as anyone else in Europe. It is different in different parts, e.g. in Northern Ireland agri-food is the biggest industry which isn’t the case in England. We must have a comprehensive strategy in place for a sustainable future for farming and food.
11. Must have a major debate in EU between now and 2008 on how farming can adapt to changing policy and how rural development and environmental benefits can be delivered most effectively.
12. Keen to ensure that the pace of change is manageable for farming.
13. Hope farming and food sectors will seize the benefits of reconnecting with the public and becoming much more market–orientated. Awful lot of work to be done.
World Trade Organisation
14. WTO DDA has the potential to impact EU agriculture in number of ways. UK believes DDA holds key to significant benefits in terms of global welfare and we are therefore disappointed that the negotiations have been suspended. However, this does not mean that the Round has failed.
15. We hope the Doha Development Agenda process can be restarted at the earliest opportunity. There remains time to reach an agreement.
16. UK Government will continue to do everything it can to re-invigorate the talks and try to reach agreement.
17. This is a real opportunity to make global trade rules more free and fair.
18. UK remains fully committed to achieving an ambitious, pro-development outcome. Defra is bringing in environmental aspect but this has been going on since 2001.
Sustainable Consumption and Production
19. Formidable challenges ahead but also huge opportunity for UK industry to innovate and develop.
20. Environmental impacts from food production and consumption are significant. Evidence suggests that these account for between 20 and 30% of overall household impacts.
21. Need to encourage food production and consumption that has lower environmental impacts. Getting more from less has economic, social and environmental gains.
22. Need to work towards the concept of One Planet Living. Currently using resources as if we have 3 planets. Need to break the link between economic growth and negative environmental impacts.
23. Dairy Sector has an important environmental and economic impact on the countryside. It comprises around 14,000 producers in England and Wales, they manage 150,000 square kilometres of land, and milk 1.7 million cows. Milk production accounts for almost 1/5 of the United Kingdom’s total agricultural output.
24. As highlighted in Defra’s recent Sustainable Food and Farming Forward Look, Meat and dairy products have greater environmental impacts than fruit, vegetables and cereals.
25. For example, the European Commission project Environmental Impact of Products found that Milk and dairy products account for around 5% of global warming potential compared with 1% for cereals, bread and flour related products and 2% each for fruit and vegetables.
26. These impacts can be influenced in the dairy and meat sectors by choices in the type of fertiliser used, feed provided to livestock, animal husbandry and genetics.
27. Waste is also a huge issue. Really big in Northern Ireland. Lot of time spent looking at how to get money from waste. Every pint of milk thrown out has required feed for the cow, energy for collection, transportation, and packaging and refrigeration. Need to seriously look at this waste issue.
28. Defra is doing a road mapping exercise for milk – it will look at everything from primary production through to processing, retail, consumption and disposal. By taking this approach, we can prioritise which practices urgently need to be addressed.
29. Consumers are being trained and influenced more, especially be retailers to demand healthy and nutritious products with a low environmental impact from a sustainable source, with high standards of animal welfare. In supermarkets, still go for cheapest, but awareness is growing.
30. Industry needs to consider carefully how it intends to develop today to meet the needs of tomorrow’s consumer.
Environmental Plan for the dairy sector
31. Do understand the environmental challenges facing dairy farmers. New initiative to tackle environmental challenges faced by dairy farmers - Environmental Plan for Dairy Farming - is being launched at the Dairy Event tomorrow. (Sept 20 2006).
32. This identifies the main environmental difficulties faced by the industry (diffuse water pollution, soil quality, air, climate and habitats).
33. In line with Government’s better regulation agenda, it doesn’t impose new regulations or other burdens on the dairy sector. It encourages farmers to take responsibility for environmental issues, by taking voluntary measures to reduce the impact of dairy farming. Plan aims to make compliance with environmental regulation easier for farms.
34. Plan focuses on specific measures:
- Nutrient Management Plans
- Agri-environment schemes like Entry Level Stewardship.
- Providing targeted advice and guidance
35. Is an example of industry and regulators working together to address genuine problems. (developed by NFU, Milk Development Council, Dairy UK, Royal Association of British Dairy Farmers and the Environment Agency, with Defra advice).
Dairy Supply Chain Forum
36. Brief word on the Dairy supply chain which I have the privilege of chairing.
37. Government working hard to support the industry through challenges it faces. Key way of working with dairy farmers and industry is the Dairy Supply Chain Forum.
38. Shape and structure of the Forum being revised to ensure that it continues to be useful and successful. Must be fit for purpose. Review will ensure that the most relevant work is taken forward by the right mix of people – work which benefits all parts of the supply chain, and helps you all towards a sustainable and successful future.
39. Also, number of key projects progressing specifically for the dairy sector. Secondee from Dairy UK assigned specifically to progress the work of the Forum and produce a report of its achievements to date so that its work can be available to the widest possible audience.
40. Forum will also help to set up an information hub for the dairy sector to ensure that information, advice and access to best practice is freely available. Want farmers working together and talking to each other. Less communication here than in continental Europe. Would be of benefit to all. Need to look at ‘Barriers to Innovation’ and make progress in the near future or people will go out of business.
41. Projects to benchmark UK industry against international producers and processors going ahead – will help industry assess its competitive position and opportunities for innovation. People need to know how competitive they are and can be.
42. Defra-funded project assessing the Potential for GB-European trade in liquid milk about to be launched – outcome of particular interest for discussion about the definition of liquid milk market – subject of key importance for industry.
43. Although Forum can help, industry must drive its own success. Government is not responsible for fixing prices and can’t be. We facilitate but don’t write rules. We have to make sure regulation is fair and market is fair.
44. Reiterate the messages set out in the recent report prepared by the Milk Development Council for NFU Scotland (“Routes to Profitability: Is Reduced milk production the solution?”) – to increase profitability, industry needs to focus on efficiency, innovation and relationships.
45. Farmgate prices remain a concern, but there are positive signs that
the industry now considering margin rather than just price.
46. Dairy industry does face a number of challenges, but there are also
opportunities to use those challenges to identify new ways forward. Does
mean risk it won’t be successful, but no risk, no product.
47. Look forward to working with you to achieve a successful and sustainable future. We must reduce environmental footprint for us and future generations.
Page published: 16 September 2006