What his most recent assessment is of the future prospects of the dairy industry; and if he will make a statement.

The long-term prospects for the dairy sector are encouraging, and the UK is well placed to take advantage of the expected growth in global demand. The British dairy sector as a whole is fundamentally sound, and, through the dairy supply chain forum, we are providing a framework for constructive debate and information for the industry to make informed decisions about its future.

Is the Minister aware of the particular vulnerability of small dairy farms in remote locations, such as the North York Moors national park, as the big dairies cherry-pick the accessible farms with the big herds? What does he think would be a fair price for milk to secure the future of such businesses for generations to come?

Setting the milk price is a commercial matter to be resolved through private negotiations that should take place within the parameters set down by competition law. The market must determine prices. I fully recognise, however, the different challenges that remote farms face and which the hon. Gentleman raises. They can be exacerbated by the fact that such farms tend to be smaller, as he describes, and unable to provide the quality of milk to make collection commercially viable. In the case of DFOB farmers, we have ensured that the parties involved have got together to make haulage costs more viable. That is one way in which remote farms could look after their business interests more collectively.

Please will the Minister listen to small dairy farmers, in particular, who will tell him that the dairy industry is far from secure in the long run? Indeed, what thinking is his Department undertaking to determine the future strategically—in terms of Britain's food supply and, in particular, its raw milk supply? The prospects are so bleak that farmers are convinced that there will be no milk production in this country within 10 or 12 years unless we do something about the matter.

I hear what the hon. Gentleman says, and his less than optimistic description of the industry. I chaired the dairy supply chain forum 10 days ago at the Department, and the impression that I got from industry members, including farmers, National Farmers Union members, dairy supply chain representatives and retailers, was one of optimism and positivity, notwithstanding a reduction in production from 14 billion to 13 billion litres and a reduction in the number of dairy farmers over the past 12 months. The overall position for the industry, however, looked very encouraging.