What assessment he has made of the effect on animal health of zero-grazing.

The permanent housing of cattle is an emerging farming system in the UK. We are funding a three-year research project with the Scottish Agricultural College to investigate the management and welfare of continuously housed dairy cows. The study will include a comparison of the health of cows in continuously housed systems with that of those in summer grazing systems.

That is good news, but does the Minister agree that the fiercer the supermarket wars and the lower the price of milk to farmers and consumers, the greater the pressure on the dairy industry to reduce costs by going for zero-grazing? Does she also agree that fears about the animal welfare implications of zero-grazing are not misplaced when herd sizes can be up to 1,000 cattle at a time, which makes zero-grazing the only option for feeding? That remains a matter of great concern. Meanwhile, the British dairy herd continues to decline.

I agree that the dairy sector is under intense pressure at the moment. I also agree with the hon. Gentleman's general comments about the concern that exists about the welfare of cattle in those systems, but I do not accept that the zero-grazing of cattle is inherently cruel or unacceptable. It is important to recognise that poor standards of animal health and welfare can exist in intensive farming and less intensive systems. The most significant influence on the health and welfare of livestock is the skills and experience of the stock keeper and the support that that individual gets, as I have seen for myself on a number of farms where livestock has been farmed extensively and intensively.

I greatly respect and have regular contact with the NFU, which has mounted a vigorous rebuttal of criticisms of zero-grazing. Nevertheless, is not a greater and greater proportion of the national herd being zero-grazed for a longer period of the year? As the years have gone by, has not further intensification of stock breeding and husbandry been associated with greater and more frequent outbreaks of disease?

Before we categorise the dairy sector as predominantly continuously housed, let me point out that the industry estimates that about 5 per cent. of herds have some cattle that are housed all year round. Dairy cattle are already ordinarily kept indoors during the winter when conditions are unsuitable for them to go outside. My hon. Friend is right to raise that concern, as is Robert Key. We are working with the industry, through the Dairy Supply Chain Forum, to ensure that we maximise the opportunities for the dairy sector and give whatever assistance we can, as it goes through this difficult period in pricing. I note that production increased marginally in April this year, compared with April last year. However, there is so much volatility that we cannot rely on one month's figures.

I thank the Minister for her reasoned and moderate approach, but would she accept, first, that our dairy industry is of fundamental importance to our food economy and, secondly, that year-round zero-grazing is totally unnatural and really not acceptable?

I accept the concerns that have been raised, but I am reluctant to pass judgment on farmers who are delivering high standards of animal health and welfare in some intensive farming systems, including those involving continuously housed dairy cows. We need to get the results of the study we are undertaking with our Scottish partners, so that we can understand the impact of the trend on the health of animals. Intuitively, I agree with the hon. Gentleman, but we need some evidence before we perhaps bring about regulatory changes that might impact on an industry already wrestling with difficult challenges.