Free Trade

Environment Food and Rural Affairs written question – answered on 24th February 2005.

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Photo of David Curry David Curry Conservative, Skipton and Ripon

To ask the Secretary of State for Environment, Food and Rural Affairs pursuant to the answer to the hon. Member for Solihull (Mr. Taylor) of 8 February 2005, Official Report, columns 1363–364W, on free trade, which items are included in the basket of food on which the Government bases the estimate that the cost of the Common Agricultural Policy to a family of four in the UK is in the range of £4.50 to £5.00.

Photo of Alun Michael Alun Michael Minister of State (Rural Affairs), Department for Environment, Food and Rural Affairs

We estimate the consumer cost of the Common Agricultural Policy by assessing the difference between the domestic price of agricultural products and the world price of agricultural products, generally measured at the farm-gate level. This price difference is multiplied by the volume of consumption in the UK. The calculation is made for the following commodities: cereals, oilseeds, rice, sugar, milk, beef, sheep meat, pigment, poultry meat, eggs, fruit and vegetables, wine, olive oil, and tobacco.

The cost for a notional family of four is derived from the total cost for the UK using population data.

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