Select Committee on Administration Appendices to the Minutes of Evidence


APPENDIX 22

Letter to James Gray MP from Mr J M C Jones

Over the past two years I have made a loss. Calves are selling for as little as £2 for beef heifer calves. Beef steers are down to half what they were. Cull cows and in-calf heifers are down by approximately half.

Milk Price—Dairy company's so strong that Milk Marque, who are restricted over doing their own producing of liquid milk into cheese, butter, yoghurt, etc., cannot compete. The price of milk has dropped up to 8p per litre over the last 3 to 4 years. To combat this expansion is necessary. More quota has to be leased in at approximately 8/10p per litre, half the mile price. Mainly this money goes to non-producing quota holders.

Problem if quota took away from these people: where will quota be leased from? New entrants to farming who save lease by quota and rent or buy land, will find it difficult or impossible; thus starving the industry of new blood.

If quotas are done away with the market will be flooded with extra milk, like the pig industry, prices will go through the floor.

17 June 1999


 
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