The Food Processing Industry

Part of 1. Questions to the First Minister – in the Senedd at 2:25 pm on 14 January 2020.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 2:25, 14 January 2020

(Translated)

We're all highly aware of the impact that losing the Tomlinson's plant has had, not only on the 330 workers working there but also on dozens of farmers, who have faced huge losses in terms of providing milk without having been paid for it. And we understand now from PricewaterhouseCoopers that only 3p in the £1 will be provided to those milk providers in payments—indeed, if there is anything left to deliver even that. We see time and time again that the farmers are at the bottom of the list when it comes to such situations. We saw something similar when Dairy Farmers of Britain was put in the hands of the administrators. The administrators themselves have the first rights to payments, then the banks, then the staff, and it's the farmers who are bottom of the list.

Now, there has been a suggestion, of course, that a special fund should be created where milk processors pay into it—some sort of insurance scheme, if you like—that could be drawn on in a situation where you do need to compensate the producers. The Agriculture and Horticulture Development Board does administers such a fund from the point of view of grain crops, so can I ask if that's something that the Government has looked at or is willing to consider? And more generally, what steps are you taking to safeguard producers from being open to situations such as this in the future?