CHAPTER 5
OTHER ISSUES
MILK DEVELOPMENT
COUNCIL
5.1 When the Milk Marketing Boards were
abolished in 1994, milk producers were asked to vote on a proposal
to set up a levy funded body to fund various activities previously
undertaken by the Boards. These included research and development,
livestock improvement, human nutrition and education programmes
and gathering and publication of dairy industry statistics. Following
a poll of dairy farmers in Great Britain which revealed strong
support for such a body, the Milk Development Council was set
up in February 1995. The Council was subjected to its first formal
review in 1997 as a result of which Ministers approved its continued
existence for a further five years.
5.2 The Order under which the Council is
set up provides for a levy to be collected of not more than 0.05
pence per litre of milk. The current rate of levy is 0.04ppl.
Recent work has focused on lameness, mastitis and fertility and
is intended to help reduce financial losses to producers. Work
on the economic feeding of cattle also offers producers scope
for reducing feed costs—a major cost on most dairy farms.
5.3 Recently, the Government has been approached
by both producer and processor interests with a request that the
MDC's remit should be extended to include generic promotion of
milk. This would require amendments to the Order by the Affirmative
Resolution procedure to include the new activities and an increase
in the maximum levy to pay for them. Processors would match the
funds raised under the levy from producers. The Government is
currently studying the request with a view to holding a producer
poll later in the year.
DAIRY HYGIENE
INSPECTION CHARGES
5.4 Under the Dairy Products (Hygiene) Regulations
1995 the Dairy Hygiene Inspectorate (part of the FRCA) undertakes
dairy hygiene inspections on behalf of the Minister, to monitor
compliance with the Regulations. The Inspectorate also oversees
microbiological sample testing of raw cows' drinking milk conducted
by ADAS on contract. Around 15,000 hygiene inspections and 1,000
sampling visits take place every year.
5.5 Since 1987 the cost of hygiene inspections
and sampling visits in England and Wales has been recovered from
producers through charges. The hygiene inspection charge is £94.
It is set to recover the full costs of the programme (including
time spent on farm, travel, follow-up work, overheads, invoicing
and debt recovery etc). Charges for inspections are reviewed annually,
and were last increased (from £92) in June 1994. Most farms
are visited every 2-2.5 years, and producers with a good track
record receive a visit only every 3-3.5 years. The sample testing
charge has not increased since 1992 and stands at £63. Currently
the full costs of the sampling/testing are not recovered, although
following Ministers' decisions in the raw cows' drinking milk
review, proposals aimed at full cost recovery will be issued for
public consultation in due course.
16 September 1999
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