2. Questions to the Minister for Rural Affairs and North Wales, and Trefnydd – in the Senedd on 27 April 2022.
7. What assessment has the Minister made of the impact of the war in Ukraine on the agriculture sector in mid and west Wales? OQ57931
Diolch. We are closely monitoring the impacts of the war in Ukraine on all the agricultural sectors, particularly the rate of inflation of input costs. The UK agricultural market monitoring group is meeting regularly to assess the position, and I will continue to maintain dialogue with all our stakeholders as the situation develops.
Thank you very much, Minister. Well, as you will know, there is no doubt that this is a very serious and difficult situation for farmers, with prices for products, energy and fuel increasing, and this on top of the cuts to the agriculture budgets from the Conservative Government and the trade deals that are going to be very damaging to the sector. And the disastrous scenes in Ukraine are placing additional pressures on our farmers. We're familiar with the historic status of Ukraine as the bread basket of Europe, with Russia and Ukraine responsible for 30 per cent of global wheat production and some 30 per cent of maize in Britain—two vital ingredients in animal feed. And we heard yesterday that the price of fertiliser has increased around four times to about £1,000 per tonne, and the implications of this on the cost of producing food are very significant, and the reality is that every ounce of food that we can't produce in these nations is likely to come out of the mouths of the poorest people in the world. So, Minister, as farmers face these difficulties, what assessment have you made of the impact of the war on the agricultural sector in mid and west Wales?
Thank you. I don't disagree with anything you say around the very serious situation in relation to the war in Ukraine, and this evening I'm meeting with my counterparts from the UK Government and Scotland to discuss, particularly, fuel prices, because we know that there is a significant increase in those input costs faced by our agricultural producers in recent months, and that's only been exacerbated by the conflict in Ukraine. You mentioned that 30 per cent of wheat comes here from Ukraine; in some of the African countries it's 100 per cent. And the issue I raised with the UK Government was that we're a very globally responsible country here in Wales and we should be thinking about how we can help countries that do have 100 per cent of some ingredients from Ukraine.
We are working very closely to monitor the position. I mentioned the group that does that. That's an internal technical group between the four Governments that advises us as Ministers in relation to these issues, and I'm in regular contact with many of our stakeholders, who certainly tell me that the prices of the commodities you refer to are having a severe impact. I visited a farm in the first week of Easter recess, and the farmer had bought a large load of fertiliser—I think it was two or three weeks before—and he said, 'I don't know whether to sell it or spread it,' because it had gone up so much in cost. So, I think it is an area for concern that is going to have an impact further down the line. But those discussions will continue. As I say, I have a meeting this evening, because I think we need to keep a very close eye on it.
Minister, the war in Ukraine has really highlighted just how fragile the global supply chains are around the world, and, as my colleague the leader of the opposition mentioned yesterday, farmers are facing huge pressures with regard to rising costs of red diesel, fertiliser prices, and feed to actually feed their animals. Minister, this is a huge problem. The first job of any good Government is to feed its population. So, can you assure me, Minister, that food production will be the main key driving factor of your agricultural Bill and the future support for farmers, so that we can weather all the world events that are thrown our way to ensure that we can make sure that the people of Wales are fed? Diolch, Llywydd.
You will have heard me say in an earlier answer to Samuel Kurtz that sustainable food production is absolutely part of the sustainable farming scheme and the agricultural Bill. I am very aware of all the issues that you've raised and I think it's really important that we do work together as different Governments across the UK, because, obviously, food security, food supply, is absolutely integral across the UK. So, as I say, I have a meeting later this evening.
Laura Anne Jones is not here to ask her question 8.
So, question 9, Rhun ap Iorwerth.