5. Statement by the Cabinet Secretary for Energy, Planning and Rural Affairs: The Food and Drink Industry

Part of the debate – in the Senedd at 4:42 pm on 23 January 2018.

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Photo of Mr Neil Hamilton Mr Neil Hamilton UKIP 4:42, 23 January 2018

I, too, welcome the statement by the Cabinet Secretary. It's a good news story, and I welcome the initiatives that the Government has taken to increase the scope of Welsh branding and also the scope for exports of our products. The Cabinet Secretary once described herself to me as a glass-half-full rather than a glass-half-empty person, and I'm glad to see, therefore, the note of optimism that suffuses the statement—after the ritual reference to Brexit uncertainty and so on—but nevertheless, looking forward to build on import opportunities that seek to substitute Welsh food and drink products, because we will have an opportunity to take advantage of the new freedoms that we'll have post Brexit.

In almost all sectors of agricultural produce in the UK—I haven't been able to find Welsh statistics and the Cabinet Secretary referred a moment ago to the need to refine the statistical base of our knowledge on Welsh production and sales—but in the UK as a whole, we are substantially in deficit on almost every area of agricultural production, and in some cases substantially so. Imports of dairy products and eggs, for example—. Sorry, I'd better put my glasses on. There's £2.8 million in imports compared with £1.2 million of exports. And in meat, again, it's £6.1 million—. No, sorry—. I haven't got my glasses on, so I can't read it all. But anyway, the upshot is that we export a lot less than we import. Therefore, this does give us the opportunity to take advantage of extra sales.

We're in the fortunate position where the world population is still rapidly growing, and those parts of the world—the countries that are most populous, like China and India—they're also becoming substantially more wealthy every year, so that means their tastes will go upmarket. So, the future for Welsh produce and exports must be in the high-end and quality sector, which is good news for us, because we produce top-quality food, and it's therefore just a question of marketing it in the global economy. This applies even to markets for lamb, where we know that we will have a significant problem if there isn't a sensible trade deal with the EU. And even though the bulk of our imports are from New Zealand, not from other parts of the world, we still have a trade deficit even in lamb. So, there are plenty of opportunities for us to make the case for greater exports. And when you consider that the value of exports, as stated here, was £436 million in 2016, in an economy worth about £60 billion, that's still a very small amount of money.

So, there must be huge scope, I think, for Welsh farmers and food producers and processors to take advantage of a growing world economy and a world economy that is becoming more and more prosperous. So, I think all parties in this house wish the Government well in the endeavours on which they're embarked, although the world is always uncertain, no matter what our trading arrangements, and certainly farmers have known, in the last 30 or 40 years, huge convulsions even inside the EU. I think there's every cause for optimism that our brand, the Welsh brand, is now recognised the world over, and even though there is a lot more to do, there is a substantial cause for optimism.