Nicholas Soames: To ask the Secretary of State for Environment, Food and Rural Affairs what steps she is taking to develop potential for commercial success in the dairy industry; what recent discussions she has had with dairy industry representatives on her Department's support for the industry; and if she will make a statement. [41879]

James Paice MP; Minister of State (Agriculture and Food): We are working with the UK dairy industry to increase its commercial success in several ways. During the last month I have met privately and publicly with farming and processor representatives. On Thursday 20 January, I chaired the Dairy Supply Chain Forum which includes representation through the supply chain from farming to retail and foodservice.

We have reinvigorated the Forum, challenging key representatives to address issues and opportunities through clear strategies, whether for the internal market or exports, to secure the long term sustainability of the industry and of British milk supply. We are urging engagement in and supporting industry-led sustainability initiatives which should build upon the success of the Milk Roadmap.

We are engaged in negotiations on the Commission Dairy proposal which is a good opportunity to enhance producer bargaining power, but to ensure UK dairy's competitiveness we would prefer that this is in line with existing competition law.

We are working with BIS to bring in the Bill establishing the Groceries Code Adjudicator to ensure that large retailers cannot abuse power by transferring excessive risks or unexpected costs onto their suppliers.