1 Minimum milk price

(1) There shall be a minimum price payable to dairy farmers for milk.

(2) The minimum price to which reference is made in subsection (1) is advisory

unless an order is made by the Secretary of State under section 2(1).

(3) 5The Secretary of State must, by order, establish the minimum price to which

reference is made in subsection (1)—

(a) not less than every 6 months;

(b) taking into account the factors in subsection (4); and

(c) to ensure that the minimum price exceeds the cost of production for

10milk for a typical dairy farmer in the United Kingdom by at least 30%.

(4) The factors to which reference is made in subsection 3(b) are—

(a) the need to ensure food security;

(b) the need to preserve the British dairy industry; and

(c) the need to encourage and reward the maintenance of the environment.

(5) 15The Secretary of State may by regulations make provision as to the

characteristics of a typical dairy farmer in the United Kingdom for the

purposes of subsection (3).

2 Mandatory minimum milk price

(1) The Secretary of State may by order prescribe the minimum price payable to

20dairy farmers for milk established in accordance with section 1 as the price

below which milk may not be purchased.

(2) If an order is made under subsection (1), it shall be an offence punishable on

summary conviction by a fine not exceeding level 5 on the standard scale to

purchase milk for an amount below the minimum price payable to dairy

farmers for milk established in accordance with section 1.

3 5The Fair Milk Mark

(1) All dairy products sold in England must—

(a) if containing or manufactured from milk for which a price was paid

equal to or in excess of the minimum price payable to dairy farmers for

milk established in accordance with section 1, bear a mark known as the

10“Fair Milk Mark”;

(b) otherwise bear no such mark; and

(c) indicate the country of origin from which they originated or, if more

than one country, the principal country from which they originated

(saving always that dairy products originating from the European

15Union may so indicate without specifying their country of origin).

(2) The Secretary of State may by regulations make provision as to the design and

use of the Fair Milk Mark.

(3) It shall be an offence punishable on summary conviction by a fine not

exceeding level 4 on the standard scale to sell any dairy product bearing the

20Fair Milk Mark which is not entitled to bear that mark.

4 Devolved administrations

The Secretary of State must enter into discussions with Ministers in Wales,

Scotland and Northern Ireland for the purposes of ensuring the establishment

of a minimum price payable to dairy farmers for milk in the United Kingdom.

(2) 25The Secretary of State must lay before both Houses of Parliament not later than

31 December 2012, and every six months after that date until the discussions

are successfully concluded, a report on the discussions conducted in

accordance with subsection (1).

5 European Union

(1) 30The Secretary of State must enter into discussions with the European

Commission for the purposes of ensuring the establishment of a minimum

price payable to dairy farmers for milk in the European Union.

(2) The Secretary of State must lay before both Houses of Parliament not later than

31 December 2012, and every 6 months after that date until the discussions are

35successfully concluded, a report on the discussions conducted in accordance

with subsection (1).

6 Intensive dairy farming operations

(1) There must be a minimum separation zone between intensive dairy farming

operations and the closest settlement.

(2) 40The minimum separation zone in subsection (1) is the greater of—

(a) five miles; and

(b) such other distance as the Secretary of State may prescribe by order,

taking into account the factors identified at section 1(4).

(3) For the purposes of this section—

• “intensive dairy farming operation” is a dairy farm or dairy farming
  
  5operation with more than 2,000 cows;

• “settlement” is any settlement consisting of five or more dwellings within
  
  one mile of one another.

(4) Nothing in this section shall affect any intensive dairy farming operation

which commenced operations prior to the commencement of this Act.

7 10Orders and regulations

Orders and regulations made by the Secretary of State under this Act are to be

made by statutory instrument and are subject to annulment in pursuance of a

resolution of either House of Parliament.

8 Financial provisions

15There shall be paid out of money provided by Parliament—

(a) any expenditure incurred under or by virtue of this Act by the Secretary of

State, and

(b) any increase attributable to this Act in the sums payable under any other Act

out of money so provided.

9 20Short title, commencement and extent.

(1) This Act may be cited as the Dairy Farming Act 2011.

(2) This Act comes into force on 1 January 2012.

(3) This Act extends to England and Wales only.