Janet Finch-Saunders

Thank you, Deputy Minister. The point was made over there about procuring Welsh lamb and beef the red meat industry within Wales to actually be eaten here in Wales. I personally have raised it previously, in local authorities and hospitals.
What are you doing, as the Minister responsible, to ensure that all local authorities, when looking to procure, actually do support our farmers and procure Welsh produce?

Rebecca Evans

I will come to procurement further on into my contribution, Deputy Presiding Officer.
Agricultural products are traded on global markets, where international factors rule, including world volatility in markets, and fluctuations in exchange rates. Individual farmers and the industry as a whole accept that the Welsh Government has no realistic control of the global market. However, what we can do is encourage and support our farmers to produce in the most efficient ways possible, utilising the latest technology and innovation in order to compete on that global market. We can help individual farm businesses develop resilience by becoming more business-like and more professional.
Farming is critical to our rural areas, to the economic, environmental and social fabric of our country, and this Government is fully committed to supporting our famers and growers for the long term. Through the common agricultural policy, we have been able to support our producers, and we will continue to do so. Our direct support mechanism through pillar 1 is vital to most farming businesses, and my recent announcement on the basic payment scheme has given farmers the certainty that they need in order to plan for and manage change over the next five years. Through pillar 2, we will ensure that we target our support where we get the greatest return for both our economy and our environment. I’ll be making further information available on the support available through the rural development plan when it formally launches tomorrow, and then I’ll make further announcements at the Royal Welsh Show.
I can assure you that ours is an ambitious programme, and we will maximise the value that we get from every pound of Welsh Government and European money that we invest. In terms of the sectors themselves, there are specific actions that need to be implemented. Last night, I launched the red meat industry strategic action plan, and that‘s a critical document in setting a clear direction for the sector with ambitious targets for the whole supply chain. I agree with Members who have argued that an equitable model for the distribution of the red meat levy is critical to support and promote Welsh beef and Welsh lamb. The discussions on this important issue have been ongoing for a number of years now, and I’m grateful for the work that Hybu Cig Cymru has undertaken, alongside the representations that I, and the former Minister, have made in seeking the best outcome for Welsh levy payers. Significant progress has been made, and we are currently reviewing the latest proposals. There’ll be a further meeting between the levy boards at the end of this month.
In terms of the dairy sector, the independent review undertaken by Andy Richardson set a clear direction for the industry in Wales. One of the key recommendations was to establish a Welsh dairy leadership board, and I have accepted the proposals for the terms of reference and the founding membership, and the board is meeting this month.
Following a review of our partnership agreement with DairyCo, I’ll be appointing a Welsh dairy champion, who will be a strategic figurehead for the industry. As in many industries, innovation is key, and the need for innovation on farm and in the processing sector is essential if the Welsh dairy sector is to achieve sustainable growth.
In terms of processing, my officials have completed the terms of reference for the feasibility study for further milk processing in south-west Wales. We aim to award this contract shortly in order to receive the final report by the end of October. I want to capture more value from the milk that we produce without transporting it out of Wales.
The same is true for the red meat sector. We’ve lost processing capacity, which has had a knock-on effect on the levy received. We recognise the importance of processing facilities in Wales, as it supports the primary producers as well as providing economic growth and jobs.
In terms of food and drink awards, we already have the Great Taste brand, which is well known and well respected, not only across the UK but across the world. Wales’s previous winners have used the Great Taste award as a springboard for future success and to make their mark on the international stage. As a result of last year’s success, this year’s competition witnessed a significant upsurge in Welsh entries, rising from 99 companies entering 374 products to 143 companies entering 491 products.
HCC continues to undertake extensive marketing campaigns to promote the protected geographical indication status of Welsh beef and lamb. Welsh Government supports the Welsh food and drink industry more widely under the Bwyd a Diod Cymru identity, and encourages the purchase of all Welsh-branded products. Through our trade development programme, we are routinely engaging with retailers, discounters, wholesalers, independents and food service companies to further build relationships and encourage the increased use of Welsh food and drink products.
My officials will continue to work with the supermarkets to highlight the food and drink market here in Wales, and I will be meeting with the retailers next week at the Royal Welsh Show to discuss their sourcing policies and their approach to Welsh produce. I look forward to being at the show from Sunday to Thursday.
The grocery supply code of practice is already in place to regulate the relationship between the 10 largest supermarkets with an annual turnover of £1 billion and their direct suppliers, with the groceries code adjudicator in place to enforce this competition policy. I’ve met with the GCA and, together, we’re planning an event in Wales for suppliers to better understand and engage with their work.
In terms of increasing the percentage of public procurement of Welsh produce, we are fully supportive of this ambition. It’s estimated that 63 per cent of total public sector purchases on food and drink were from Welsh companies. The largest proportion of spend is on meat products, and that represents around a quarter of purchases. The national procurement service is actively engaging with key stakeholders across the Welsh public sector through its food category forum, and is developing a national procurement service food strategy, to bring food and drink procurement within its scope towards the end of this year. Under EU procurement laws, we need to ensure that our sourcing is open, transparent and available to any supplier across Europe. However, there are certainly benefits from sourcing closer to home that we’ll be seeking to take advantage of while we take this agenda forward.
We’ve discussed calls for mandatory country-of-origin labelling to be extended to the dairy sector. In discussions ahead of European Council of Ministers meetings, I continue to argue that we should explore options for making an appropriate country-of-origin labelling regulation for milk and milk products, providing that it meets the needs of both consumers and producers. In doing so, we appreciate the need to ensure that we do not inflict extra administrative costs and burdens on the industry in Wales. This approach is supported by the Department for Environment, Food and Rural Affairs.
In closing, I’d like to reiterate that the red meat and dairy sectors will continue to be vital to our agriculture industry here in Wales, and, whilst there might be short-term difficulties in terms of market prices, I remain confident that the future is a positive one, if the industry at individual farm level and individual farmer level embraces fully the vision and the need for change that I described when I was side by side with the presidents of NFU Cymru and the FUW at the Wales farming conference last month. Thank you.