Lord Stoddart of Swindon – 2014 Parliamentary Question to the Department for Environment, Food and Rural Affairs

The below Parliamentary question was asked by Lord Stoddart of Swindon on 2014-06-09.

To ask Her Majesty’s Government, further to the Written Answer by Lord Newby on 6 May (WA 314), what is their estimate of the average additional weekly cost of food to United Kingdom families arising from membership of the Common Agricultural Policy.

Lord De Mauley

As stated in the previous response to WA 314, the Organisation for Economic Co-operation and Development (OECD) calculates the annual monetary value of gross transfers from EU consumers arising from policies underpinning the Common Agricultural Policy (CAP).

The OECD estimates that EU consumers faced higher food prices equivalent to approximately €16 billion in 2012. This equates to 4% of consumption expenditure on agricultural commodities (at farm gate prices), and compares to an average 71% in the late 1980s.

Agricultural commodity prices are a key factor in determining food retail prices but other factors are also important, such as energy prices and exchange rates. Therefore the impact of CAP on consumers’ weekly cost of food will be less than the 4% figure reported above.

There is no agreed OECD methodology to disaggregate estimates to individual EU member states, so these figures are not available at the UK level.