Welsh farmers expected to respond to growing demand for food
"There is an expectation that farmers in Wales and the rest of the UK will respond to the growing demand for food. The perception is that the farming industry in Wales will be able to rise to the challenge of increased agricultural production to feed the growing population -but how does an industry that is besieged by red tape and regulation, by the added burden of cost this brings and the constraints it imposes in production terms rise to this challenge?"
This will be one of the issues the President of NFU Cymru, Dai Davies’, will want to discuss with the Welsh Assembly Government’s Rural Development Sub Committee when he gives evidence tomorrow [5 February 2009] on its inquiry into the production and promotion of Welsh food.
Mr Davies added, "The chief scientist in Defra is on record as saying that the world has to increase its agricultural production by 50% in the next 20 years and because of our comparative advantage – climate change is likely to impact less on agricultural production in Northern Europe and we are better placed in the related but separate issue of water availability – the perception is that the industry in Wales will be able to rise to this challenge. However, how is an increase in production achieved whilst decreasing farming’s environmental footprint? There has to be a sympathetic policy and regulatory framework if we are to raise domestic production whilst continuing to raise our environmental performance in Wales."
On the subject of the production and promotion of Welsh food NFU Cymru has also already submitted written evidence to the Rural Development Sub Committee. In its evidence the Union has also made it clear that there has been insufficient innovation, new product development and product differentiation by the Welsh Assembly Government’s food strategy.
Dai Davies said, "To date the strategy in Wales has been concentrated on niche market activity. NFU Cymru feels, given the large amount of commodities produced in Wales that there should be a greater focus on larger scaled processing adding value to volume of product produced in Wales. In the dairy sector for example it was a strategic objective of the agri food partnership to reduce the quantity of milk leaving Wales for processing. Whilst some progress has been achieved to ensure Wales benefits from this added value potential much more needs to be done."
In responding to the question about what are the main challenges for the Welsh agri-food sector over the coming years NFU Cymru will tell the Rural Development Sub Committee that farmers need profit and confidence to invest in their businesses. The Union strongly believes that the increased costs of production have not been reflected in end prices. Retailers have failed to remunerate farmers fairly and as a consequence of low returns and high costs there is generally little capital available for investment in the industry.
Mr Davies said, "Food retailer prices increased by 57% in the 1988-2007 period, farm gate prices increased by only 17%. The increase in the cost of living over the same period was 93%. This is also reflected in the declining farmers’ share of the ’food pound’; given the basket of goods the farmers’ share has declined by some 20% since 1988."
On the issue of marketing and promoting Welsh food NFU Cymru believes that whilst the Taste of Wales initiative has done much to brand and promote niche products much more could be done to put in place public procurement initiatives. The Union recognises that there are some good examples of good practise in terms of Health Trusts purchasing Welsh beef and local education authorities supporting local sourcing but such good practise tends to be the exception rather than the rule and there is scope not just to raise local procurement strategies amongst these institutions but in the MOD, the prison service, social services, etc.
Mr Davies said, "Further encouragement needs to be given to high profile establishments like the Welsh Assembly, the Millennium Stadium, the Millennium Centre, the National Botanical Gardens etc to support a local procurement policy. High profile events like the Ryder Cup 2010, the Olympics 2012 should be similarly used to promote the local food industry."
In conclusion, NFU Cymru regards this inquiry as a crucial piece of work for the Rural Development Sub Committee. Mr Davies said, "We believe there is a strong case for an integrated pilot programme from local production through to processing, packaging and supply to help secure the more significant procurement contracts. Whilst there have been a proliferation of strategic action plans a tangible catalyst is needed to assist and coordinate delivery. We are disappointed that there has been an apparent vacuum in the agri food strategy which ended in 2007 and we are looking to the new food strategy group and the food and market development division to address this gap and to progress the Welsh food agenda both quickly and positively."
