Falling Prices Threaten Farmers - George

12.00.00am BST (GMT +0100) Thu 14th Aug 2003

A period of dramatic falls in farmgate prices has more than negated the benefits of relatively static input costs, according to Liberal Democrat Shadow Agriculture Secretary, Andrew George MP.

Latest official agricultural price indices show that farmers have seen the price of cereals fall by 22%, milk by 21% and seeds by 17% between 1997 and 2003. In comparison, input prices fell by 0.2% over the same period.

Andrew George MP said: "These figures confirm what farmers already know - the prices they receive for their products continue to fall while input costs remain the same."

"If any other major industry faced this level of hardship, there would be a national outcry, followed by a series of emergency Government measures. Instead, the Government's Rural Tsar, Lord Haskins, sees this trend of disappearing family farms as a 'good thing'."

"The Government must take action to give farmers better protection from the commercial pressure from supermarkets with huge market dominance. More robust measures are needed to ensure that food imports meet the same health and animal welfare standards expected of British producers."

ENDS

Notes to Editors

According to the agricultural price indices, published by DEFRA on 14th August 2003:

• overall output prices fell by 8% between June 1997 and June

2003.

• input prices fell by 0.2% in the same period.

• the price farmers receive for cereals fell by 22%, the price

for milk fell by 21%, the price for seeds fell by 17% and the price for animals slaughtered for export fell by 8% between June 1997 and June 2003.