Food Processing Capacity

2. Questions to the Minister for Rural Affairs and North Wales, and Trefnydd – in the Senedd on 30 November 2022.

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Photo of Andrew RT Davies Andrew RT Davies Conservative

(Translated)

8. Minister, could you give us an update on the ability to increase processing capacity here in Wales? OQ58792

Photo of Lesley Griffiths Lesley Griffiths Labour 3:14, 30 November 2022

Thank you. The Welsh Government is building on its strong track record of investment in the food industry, as described in my strategic vision published last year. This month, I launched £40 million of investment through the new food business accelerator scheme to support capital investment in processing equipment and infrastructure.

Photo of Andrew RT Davies Andrew RT Davies Conservative

Thank you, Minister. One thing that has always perplexed me is driving along the M4 and seeing tanker after tanker exporting milk out of the west Wales milk field. I appreciate it's not the Government's decision that that happens—it has been a commercial decision that dairies over many decades have taken—but, surely, through any processing capacity that the Welsh Government is looking at, it should be a priority to try to get more processing capacity into that substantial—it is substantial—milk field, one of the biggest in western Europe, so that value can be added to the product and, yes, then transported out of Wales to achieve the full value on the shelves of the UK and beyond. So, with the strategies that you've put in place, how confident are you that by the end of this Senedd term in 2026 we might see an increase in processing capacity in the west Wales milk field to add that value and keep that money here in Wales and at the farm gate?

Photo of Lesley Griffiths Lesley Griffiths Labour 3:15, 30 November 2022

I think you raise a really important point, and we saw what happened in north-east Wales when we lost a milk processor—the difficulties that that caused. So, I'm really keen to see more milk processing taking place here in Wales and we're not seeing those tankers, as you say, cross the border. It is a commercial decision, but what I think Government's role is is to make sure that we have schemes that are easily accessible for people who are looking to either expand their premises or look for funding for further capital investment. I mentioned the food business accelerator scheme—it only opened I think it was 17 November—we've put £40 million there. It will stay open as long as it needs to for that £40 million to be used up, so I do hope it will be fully utilised in the way you suggest.