Skimmed Milk Powder

Environment Food and Rural Affairs written question – answered on 9th January 2002.

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Photo of Ann Winterton Ann Winterton Conservative, Congleton

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact of the worldwide slump in skimmed milk powder consumption on the UK milk producing industry; and if she will make a statement on recent trends in milk prices.

Photo of Elliot Morley Elliot Morley Parliamentary Under-Secretary, Department for Environment, Food and Rural Affairs

The fall in world demand for skimmed milk powder has depressed prices. Low demand in the UK coupled with low prices could lead to an increase in public intervention. That is why the Government have supported moves by the Commission to stimulate markets both at home and abroad.

The producer price for milk reflects the position in the market and, therefore, has recently shown a downward trend following a very sharp recovery compared to a year earlier. The action already taken may help arrest this trend but the price will ultimately be determined by supply and demand.

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