Growth in the Welsh food processing sector is being limited by the importing of meat from countries that do not comply to the high environmental and welfare standards that Welsh farmers and processors are governed by.

Food processing adds £7bn to the Welsh economy, supporting jobs, communities and food security across the country. However, the industry needs Government help so it can grow and thrive, according to a new report published this week by the Senedd’s Economy, Trade and Rural Affairs Committee.

The Committee is urging the Welsh Government to take stronger action to shore up the food processing sector and help key business grow. This will create robust local supply chains, increase food security and sustainability and help people enjoy high quality food produced in their own communities.

The report warns that the decline in Welsh livestock numbers could threaten the viability of our red meat industry, leading to Wales filling the gap by importing lower quality, lower welfare and higher carbon meat, calling on a future Welsh Government to consider introducing a headage payment similar to the Scottish Government’s suckler calf premium to encourage growth in premium beef production.

It also finds that public sector procurement could play a much stronger role in supporting Welsh food businesses by creating stable, long‑term demand.

Andrew RT Davies MS, Chair of the Economy, Trade and Rural Affairs Committee said: “Food processing is big business in Wales and it has the potential to do even more for our economy, our environment and our communities.

“Our report sets out a vision for a resilient, sustainable, and thriving Welsh food processing industry which will create more jobs and help grow our economy.

“To achieve this vision the next Welsh Government must create an overarching and holistic strategy for the whole food system, align Government food policy, support the food processing sector, and prioritise sustainability and food security.”

“By supporting local processors, using public procurement more effectively and setting clear ambitions for food produced in Wales, the Welsh Government can help build a more resilient and sustainable food system that works for everyone.”

“Initiatives like the Welsh Veg in Schools project are boosting locally grown organic vegetables in primary school meals. Wales’s universal free school meals policy ensures steady demand, showing how public procurement can support local producers while promoting healthy, sustainable food.”

Dr Siobhan Maderson of the Soil Association told the Committee: “The work of Welsh Veg in Schools project is exemplar in this field. Concrete support from the Welsh Government can support its expansion to meet its goal of 25 per cent of all food in Wales’s primary schools to be locally, organically produced by 2030.”

To boost food security and growth, the Committee urges the Welsh Government to adopt Food Policy Alliance Cymru’s target of producing 75 per cent of Wales’s vegetables locally. Members stress that significant investment in horticulture - polytunnels, washing, cutting, and storage facilities - is needed.

The Welsh Government must now respond to the Committee’s report.