APPENDIX 22
Memorandum submitted by Mr James Gray
MP (Q33)
I know that your Committee is shortly to consider
the plight of dairy farming in the UK and thought that you might
find it useful to have some evidence gathered together from family
dairy farmers on the ground, of whom North Wiltshire has a particularly
large proportion. I have also summarised some of the more salient
points from their evidence.
6 July 1999
SUMMARY OF EVIDENCE FROM NORTH WILTSHIRE DAIRY FARMERS
L. PRICE
OF MILK
"On our own family unit we have seen milk prices
drop by 25 per cent, calf prices drop by 50 per cent, beef prices
drop by 25 per cent, cull cow returns halved . . . And only one
thing increasing—the bank overdraft!!"
(Robert Biggin, Trinity Farm, Lower Seagry)
"I am selling June's milk to Milk Marque for
15.2p per litre, a figure comparable to that in 1979—(8p
a pint)."
(Peter Crocker, Home Farm, Minety)
"Price of milk is now less than the cost of
production and is the lowest in EU."
(Ro Collingborn, Hill End Farm, Brinkworth)
"A pint of bottled water retails at 27 per cent
more than a pint of milk in our local supermarkets."
(R W Russell, Church Farm, Brinkworth)
"Our turnover on milk has fallen by £18,000
in the last two years and the outlook is bleak. In my 50 years
of farming it is my opinion that a healthy monthly milk cheque
is the basis for a contented industry."
(P A Smith, Home Farm, Biddestone)
2. QUOTAS
"Too many non-producer farmers hold milk quota
and get an income of 20 per cent."
(Peter Crocker, Home Farm, Minety)
"More quota must be leased to combat the strengths
of the dairy companies."
(John Jones, Manor Farm, Slaughterford)
3. MILK MARKETING
"Milk Marque, our previous buyer, has now been
broken by the buyers control. I have moved to Dairy Crest."
(John Borras, Great Middle Green Farm, Dauntsey)
"The milk price since June 1997 has gone down
5 pence per litre. On 1 million litres, a drop of £50,000.
Reason: Strong pound and questionable milk buying."
(David Clover, Ashton Keynes)
"As the price has gone down, we have been asked
to increase our standards, e.g. another bulk tank for every other
day collection. The attitude of the large dairy buyers, in particular
Unigate, have contributed largely to this pressure."
(Ro Collingborn, Hill End Farm, Brinkworth)
"It appears that these supermarkets would like
to see dairy farming go the way of the pig and poultry industry—a
few large suppliers with large cow numbers being easy to inspect
and control."
(Ro Collingborn, Hill End Farm, Brinkworth)
"The Dairy Industry Federation has been particularly
unhelpful, using its utmost power to remove the farmers' cooperative
from the market by offering one penny above the Milk Marque price."
(Ro Collingborn, Hill End Farm, Brinkworth)
"Milk Marque is vulnerable. It needs a selling
system that is not open to manipulation by an informal cartel,
and it needs to process to increase demand for our milk."
(Ro Collingborn, Hill End Farm, Brinkworth)
"We sell to Milk Marque because the only way
we can regain a reasonable return for our milk is to get closer
to the consumer and retain a reasonable share of the end product
price."
(Alec Glass, Foxham Farm, Foxham)
"Those who oppose Milk Marque's acquisition
of processing capacity do so out of self interest."
(John Tuck, Highgate Farm, Wootton Bassett)
"We joined Milk Marque on vesting day, believing
that being part of a large strong, farmer-owned cooperative was
the best way, but ever since, the dairy trade has undermined its
function and the delay in the MMC report has made things worse."
(Denise and Richard Plummer, Leaze Farm, Stanton
St. Quintin)
4. CALF AND
CULL COW
PRICES
"Calves are now a waste product. I used to gross
some £5,000 a year before we were banned from access to the
Continent. Barren cows used to realise £12,000 per year,
now £6,000?"
(John Borras, Great Middle Green Farm, Dauntsey)
"Before the BSE crisis, we expected to average
£100 for a Friesian bull calf that is now worthless. We used
to get £80 for a beef heifer calf for which we recently got
the princely sum of £4.95."
(Daphne Edwards, Cowbridge Farm, Malmesbury)
"One last question which we would like to put
to the Select Committee. What are we to do with the calves that
are not sold in market? Do we shoot them on the farm, send them
up to Downing Street, or set up a charity for unwanted farm animals?"
(Daphne Edwards, Cowbridge Farm, Malmesbury)
"Calves are selling for as little as £2
for beef heifer calves."
(John Jones, Manor Farm, Slaughterford)
5. FIXED COSTS
"Fixed costs like the rise in diesel and the
Council Tax are completely out of our control . . . We took the
step of cutting back from having a farm worker to depending entirely
on family help."
(Ro Collingborn, Hill End Farm, Brinkworth)
"Even though our milk was already the dearest
in Europe, as our incomes have declined, we have been asked to
increase our standards—e.g. another bulk tank for every
other day collection."
(Ro Collingborn, Hill End Farm, Brinkworth)
"A recent survey of the cost of production of
a litre of milk, taken over 140 farms in the SW concluded that
the total cost is £24.28 per litre."
(Ro Collingborn, Hill End Farm, Brinkworth)
"I am in a buying group of 26 local farms, and
we make significant savings in our inputs. Small farms are at
a disadvantage when it comes to capital expenditure. We are being
forced to invest in plant and equipment to meet environment and
animal welfare controls—our competitors do not have to."
(Peter Gantlett, Woodhill Park Farm, Bushton,
Swindon)
"We have decided to sell up. We cannot go on
losing money. We need to replace our milking parlour and dairy,
and need a new bulk tank so we can go to every other day collections.
That will cost £150,000. How can we afford that when we get
l5p per litre?"
(Mr and Mrs Gainsford, Manor Farm, Grittenham)
6. THE FAMILY
FARMER
"In 1995 there were 22 dairy farms within two
miles of the centre of Brinkworth and 73 within a four mile radius.
Most of the smaller farms, milking less than 60 cows, have now
ceased production. These are the traditional family farms with
a high regard for animal welfare. They are now demoralised and
they are becoming physically ill."
(Ro Collingborn, Hill End Farm, Brinkworth)
"Factory farming is neither desirable for animal
welfare, nor is it what farmers or the public want. They want
welfare friendly family farms."
(Ro Collingborn, Hill End Farm, Brinkworth)
"I am a partner in a business whose assets are
valued at £1.2 million, whose turnover is £150,000,
whose profit to 31 March 1998 was £8,000 and which will make
a loss this year."
(R W Russell, Church Farm, Brinkworth)
"I have been a dairy farmer for 37 years, and
have never known such desperation ... Why do the government seem
to want to destroy smaller family run farms?"
(David Clark, Glebe Farm, Dauntsey)
"This all points to a gloomy outlook for those
of us who stay in farming and for any young people thinking of
joining the profession."
(R J White, White Lodge, Farm, Braydon)
"This farm used to be surrounded by five other
dairy farms. Only one of these remains as a farm, no longer dairying.
Does my son, who now has a degree in agriculture, have a future
in farming? Neither platitudes, cliches nor soundbites constitute
a future. Please tell the Government that."
(John Tuck, Highgate Farm, Wootton Bassett)
6 July 1999
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