RDC (3) FD - P19

Rural Development Sub Committee

Inquiry into the Production and Promotion of Welsh Food

Response from Powys County Council

Lesley Kirkpatrick
Pennaeth Adfywio a Datblygu
Head of Regeneration and Development

Adfywio a Datblygu

Regeneration and Development
Neuadd Maldwyn,
Ffordd Hafren./ Severn Road,
Y Trallwng / Welshpool, Powys. SY21 7AS

Re: National Assembly for Wales Rural Development Sub-Committee enquiry into the production and promotion of the Welsh Food.

Powys County Council welcomes the opportunity to provide evidence to the National Assembly for Wales Rural Development Sub-Committee enquiry into the production and promotion of the Welsh Food.  In respect of the specific questions raised by the Sub-Committee, the Council’s response is detailed in the following paragraphs. For ease of identification the Councils response is delineated by the use of an italic font.

What are the main challenges for the Welsh agri-food sector over the coming years?

The sector needs to address issues of marketing, promotion, labelling and branding.  Producers will need to fight to compete with cheaper, mass produced food which consumers will be minded to buy in the current harsh economic climate.

Brand identity provides essential information for the consumer and creates an expectation and standard. This needs to be utilised effectively in the current economic climate, to ensure that agri food sector can effectively promote itself in order to maintain market share.

What are the opportunities for the agri-food sector?

Food purchases based on organic, locally grown principles are increasingly seen as a 'rich green’ luxury, exclusive to the higher earning householders who are keen to follow trends. The agri-food sector needs to find a "grass roots level” at which to market and sell, in order to widen the consumer base. If consumer awareness continues to focus on the reputation of the food producer, rather than the food itself, the market will shrink further, perpetuating the myth and reinforcing it, rather than working hard to contradict misperceptions.

Animal welfare is an issue which consumers are either passionate about or happily ignorant. Organic now implies higher cost rather than higher standards of welfare and, with the exception of the media generated by a few celebrity chefs, little has been done to highlight animal welfare issues.  This will not be adequately addressed until public awareness increases through increased marketing and promotion supported by Government.

What effect is the current economic climate having on the sector and how will this impact on Welsh produce in the future?

Many individuals and businesses within the sector feel demoralised, there is little incentive to enter the sector, or encourage entrepreneurship. As a result, the sector is more likely to shrink rather than grow.

How should the Welsh Assembly be responding to this?

The Welsh Assembly needs to be more realistic with regard to the situation that modern farmers and food producers find themselves in. There is an overwhelming demand for businesses to conform to a variety of legislation and paperwork which comes at a cost of time and money. The sector consists, almost exclusively, of micro businesses, and of businesses that have often diversified. A very specific, tailored approach is necessary to accommodate the unique difficulties that come with operating a business in such a constricted business environment. The sector needs to acknowledge that in order to survive, and thrive, in a modern business market; it must compete effectively and provide the same standards of business practice as the accepted norm in other sectors, such as hospitality and construction.

How effective have Welsh Assembly Government policies and initiatives been in stimulating the growth of the agri-food sector in Wales?  Which initiatives have been effective or ineffective and why?

The True Taste brand has worked successfully to establish a benchmark for others to aspire to. Generating an expectation of high standards is imperative to encourage agri-food businesses to stretch themselves and meet demand in a competitive market.

Establishing brands, such as True Taste or Hybi Cig Cymru (Meat Promotions Wales), enhances the reputation of agri-food products outside of Wales and results in the market for selling premium range produce widening considerably, generating an economic growth area for the country as well as individual businesses.

J. Gareth Thomas
Rheolwr Adfywio Economaidd
Economic Regeneration Manager