Examination of Witnesses (Questions 400
- 403)
WEDNESDAY 25 OCTOBER 2000
MR RON
GREEN, MR
GRAHAM KEATING
AND MR
KARL TUCKER
400. You tell me. What are the economics of
this? You think the economics would stack up?
(Mr Green) Yes.
Mr Todd
401. I take it from Mr Keating's answer that
simplistic target setting for volume conversion and consumption
does not seem a particularly helpful initiative from the Government.
Certainly I have commended exactly the step you have set down
which is to examine the supply chain mechanism and look at how
one can assist in dealing with shortfalls in both processing and
particular forms of supply to respond to market demand. Would
you agree with that analysis?
(Mr Keating) Yes, I would. I think responding to Mr
Drew's comment, going forward we believe that we should be able
to set organic farming, the farming chain into a position where
it is a profitable one. It is a learning curve. It is hard work
but the market is such that we should be able to manufacture a
pricing policy all the way through the chain where farmers, once
they have been helped to convert, it is then on the shoulders
more of the processing and retail industry to support that through
maintaining a price that is reasonable, a fair return.
Mr Drew
402. If I can just come back in there. We will
have this argument privately about the organic target. Unless
you actually set some realistic targets and ratchet them up you
are always going to be playing catch up with the market place
if the demand, as one presumes, continues to increase?
(Mr Keating) Yes. I think some target setting is required
because we have no plans but, arbitrarily, the 30 per cent that
has been called for, I am not sure whether that is right. In turn
we believe that 10 per cent of dairy manufacture is attainable
within the year 2005. The thing target setting does do is it makes
you then do that exercise and say "Well where will the shortfalls
be?" If you do not start with a target and say "Where
will the shortfalls be now" by the time you realise there
is a shortfall it is three years to convert your farm to actually
fill that shortfall.
Chairman
403. That is an issue which you will realise
has not commanded consensus on this Committee. I have no intention
of going into that particular debate at the moment. Thank you
very much indeed. Is there any point you wish to make which you
wish you had made, have not made or want to correct, very rapidly,
before we move to the retailers?
(Mr Tucker) We believe the appropriate level of government
support has the ability for UK domestic suppliers to meet the
organic demand from its consumers and can also benefit the United
Kingdom PLC on a much wider scale through the whole organic and
farming area.
Chairman: The word "appropriate" is
one of the most beloved words of government. It always replaces
the word you ought to be using. Thank you for coming. You can
go and have a coffee, but if you want to listen to the retailers
you are very welcome to sit there and stare at their backs. Would
the retailers like to come up?
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