4. What is the Minister doing to support the egg industry in South Wales East? OQ59130

The Welsh Government provides support to the egg industry in south-east Wales. Funding is available through our capital grant schemes, with direct advice and support made available to farm and food businesses via our Farming Connect and Business Wales teams.

Thank you for that response.

Most people who have been food shopping in recent months will have noticed a shortage of eggs. Some producers, faced with rising costs and supermarkets that refuse to reflect this in their contracts, are leaving the industry if they can. This was made clear to me by an egg producer in my region during a recent meeting. They told me in no uncertain terms that the egg sector is in deep trouble. Minister, what can be done to get better co-ordination in the supply chain to give our farmers confidence to produce our Welsh eggs? Unless this matter is tackled, we face increased importation of eggs to fill the gap, with no guarantee that they were produced to the same standard and, therefore, free from bacteria like salmonella. It is vital that eggs remain fully traceable as well as affordable, and I would like to know what the Government is doing to address the major problem in the sector.

Thank you. This is obviously a very challenging time for all our farmers, and I know poultry and egg farmers are particularly reliant on feed and energy, two areas where we have seen significant rises in the costs because of agri-inflation. The egg industry—and I think you were referring to this in the first part of your question—is also calling for contract reform to prevent suppliers being locked into loss-making positions and to provide some stability for the sector, going forward, amidst the ongoing egg shortages. I did write to the Department for Environment Food and Rural Affairs Minister, Mark Spencer, just before Christmas on this matter, because I think it's something that we can look at on a UK-wide basis. I'm awaiting a response from him. But I do think we could do better if we work together across the UK, and, obviously, the Minister I referred to for farming, fisheries and food could use his powers under the Agriculture Act 2020 to consult with the industry, to establish whether a legislative solution is required to support them going forward. We've also had the impact of a very, very sustained avian influenza outbreak over the last 18 months or so, which clearly has had an impact too.

I thank the Member for South Wales East for raising this, and I share his concerns and the industry's concerns, and I refer Members to my register of interests as a farmer.

Poultry producers in Wales have been facing the twin pressures that you recognise of avian influenza and surging production costs for some considerable time. Off the back of a meeting of concerned poultry farmers at the end of 2022, I think NFU Cymru wrote to you, Minister, asking if you would consider making use of the powers under Schedule 5, Part 2 of the Agriculture Act 2020, to investigate whether an exceptional market conditions declaration ought to be made. As you'll recall, I've raised this previously in the Chamber, and this was called for in light of the severe market disturbances being experienced by producers and consumers. And, Minister, you've partly answered my question, but could you update the Senedd on what discussions you and your officials are having with the industry and DEFRA since the end of November?

Thank you. So, I did raise it at our inter-ministerial group in December and then subsequently wrote to the Minister for farming, fisheries and food. As I say, unfortunately, I haven't had a response to that letter. We have a further inter-ministerial group, I think, in a fortnight, so I will raise it again if I haven't had a response. I do think we need to look at how we use those powers and, as I say, whether a legislative solution would be the best way forward, but, obviously, my officials continue to work across the UK at official level with the agriculture market monitoring group. I've asked them to really stress, because it's such an integrated supply across the UK, a UK-wide solution would be the best way forward.