Our ambition to further develop Wales' food and drink sector - CONSULTATION PAPER Date of issue: 23 July 2019 Responses by: 15 October 2019
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CONSULTATION PAPER
Our ambition to
further develop Wales’
food and drink sector
Date of issue: 23 July 2019 Responses by: 15 October 2019
WG38009 © Crown Copyright 2019
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2 | Our ambition to further develop Wales’ food and drink sector
Overview
We seek your response to the Welsh Government How to respond?
and the Food and Drink Wales Industry Board’s Please complete the consultation response form
joint proposals for a strategic plan to further and send it to:
advance the food and drink sector in Wales for FoodandDrinkConsultation@gov.wales
the period 2020-2026. The proposals build on the
success of Towards Sustainable Growth1 an action The closing date for the consultation is midnight
plan which developed out of the 2010 strategy on the 15 October 2019. We may not be able to
Food for Wales, Food from Wales report2. take into account any responses received after
The consultation describes a strategic vision and this closing date.
mission for the sector, and describes the main
objectives and actions we propose to undertake. Further information and related documents
Large print and Braille versions of this document
The food and drink sector is part of the
are available on request. Please contact us at:
Foundational Economy described by the Welsh
FoodandDrinkConsultation@gov.wales
Government’s Economic Action Plan (EAP)3.
Our proposals present how the food and drink Food Policy and Strategy Unit
sector can develop to prosper and benefit Wales Welsh Government
and its communities. The food and drink sector Rhodfa Padarn
is relevant to a wide range of Welsh interests Llanbadarn Fawr
and the challenges of our times. Its development Aberystwyth
should contribute positively to addressing these SY23 3UR
and our consultation explains a coherent and
integrated set of goals and actions to do that.
We are consulting on a strategic plan and so we
do not describe the day to day detail of what
we will do when, or exactly how to deliver the
plan. Circumstances change and we want to
respond and adapt within the context of the
main goals of our plan. We will develop subsidiary
operational plans and procedures throughout the
2020-2026 period. We commence with a wide
range of initiatives already in place, and both tried
and tested. We will review and improve these
as we move from our current action plan and
strategy to our new strategic plan. New initiatives
will commence, some current initiatives may end.
We expect to publish a completed strategic plan
for 2020-2026 in late 2019 or early 2020.
1 (businesswales.gov.wales/foodanddrink/about-us/action-plan)
2 (businesswales.gov.wales/foodanddrink/sites/foodanddrink/files/documents/Food for Wales Food from Wales.pdf)
3 (gov.wales/prosperity-all-economic-action-plan)
3 | Our ambition to further develop Wales’ food and drink sector
4 | Our ambition to further develop Wales’ food and drink sector
Contents Foreword by Lesley Griffiths AM, Minister of Environment, Energy and Rural Affairs 6 Foreword by Andy Richardson, Chair of the Food and Drink Wales Industry Board 7 Chapter 1: Our Vision and Mission 8 Chapter 2: Developing our Businesses 17 Chapter 3: Benefiting our People and Society 25 Chapter 4: Promoting Wales as a Food Nation 31 Chapter 5: A partnership we seek with the food and drink sector 37 Annex 1: Targets and Indicators 41 5 | Our ambition to further develop Wales’ food and drink sector
Foreword by Lesley Griffiths AM
Our food and drink sector is a success. It is help make our food system more resilient.
growing in scale, our profile is rising. There is a The proposals are part of the Welsh
will and dynamism to succeed. Throughout all Government’s wider programme and ambition to
we have achieved under our current Action Plan enrich our communities in Wales. They connect
(Towards Sustainable Growth), and at the heart of with related plans and developments for public
our success has been true partnership between health, for waste and carbon reduction, for
business, technical experts, and government. sustainable use of resources, for providing fair
The Food and Drink Wales Industry Board has work and employment across our communities,
provided leadership and valued advice. I thank for the economy, and our international profile,
them, and I look forward to our next phase of to name some. Wales has the resources to
work as the Board and I seek to help the sector develop as a food and drink manufacturing nation
build on its success. of renown in ways which benefit our people and
society as a whole. In these interconnected ways,
We face uncertainty and challenge from Brexit. through multiple initiatives, we are on a journey
However, as the situation develops, we can be to improve our food system for all.
confident our food and drink sector starts from
a good place. Brexit will be a big disruptor but I am grateful to everyone who has worked with
it should not distract us from recognising and my team to inform these proposals. The Board
tackling long term challenges we must face and I want a strong and vibrant sector, a sector
and address. Raising productivity, growing our which has a global reputation for producing
scale, sustainable business practice, stimulating excellent food and drink. I look forward to your
resilience throughout the supply chain, response, with a view to finalising our new
adding value to our produce, promoting strong strategic plan in the coming months.
routes to world markets, and raising our profile,
must be our goals. Through all we do, we will
demonstrate the sector living our values and
creating well-being for the whole of Wales.
This strategic plan is focussed on developing
our manufacturing base. It is not a proposal
for a holistic food system change because we
recognise we operate within a competitive UK
and global market which responds to consumers.
But it is a plan about how we develop the sector Lesley Griffiths AM
in ways which are sustainable, enhance Wales’ Minister for Environment, Energy and Rural Affairs
well-being, and create strong networks which
6 | Our ambition to further develop Wales’ food and drink sector
Foreword by Andy Richardson
I am immensely proud to chair The Food and We must increase our focus on raising
Drink Wales Industry Board. productivity and produce food and drink
in a sustainable way. We should recognise
I believe there is something special and exciting the important contribution the sector does
about how Welsh Food and Drink is currently play and can extend further to Welsh society
growing in size, value and confidence. There is through providing good employment across
no doubt that we are growing in confidence, the country, building supply chains with our
professionalism and scale and this success has partner businesses in agriculture and fisheries,
not been achieved by accident. Whilst I’m full of wholesale and retail, and complementing tourism
pride about the role the Food and Drink Wales and our international image. Through our
Industry Board has played in this success, it has product offer and high manufacturing and
to be recognised that our real success has been production standards, we can enhance Wales’
achieved by the hard work of food and drink reputation on the world stage.
businesses, the commitment, expertise and drive
of the Welsh Government, the many delivery The Board will have a continuing role in finalising
partners who share our passion for success and these proposals and will be a partner in their
the commitment, insight and expertise of my delivery. Throughout the process the Board will
Board colleagues. Our success is being achieved be a critical friend as well as an adviser to the
through true collaboration and an ethos of Welsh Government. We will be a catalyst bringing
helping others to be more successful and it’s the industry and our partners together so we
becoming highly contagious! can continue to grow a strong and vibrant food
and drink sector in Wales, for Wales and set an
The Food and Drink Wales Industry Board has example to the world.
been proud to play an important role in bringing
Towards Sustainable Growth to life, both as a Please join us on the next stage of our journey.
champion and an ambassador of the industry.
We are a bridge between the Welsh Government
and businesses and we have worked tirelessly to
create this success.
The Board believes continued partnership will
be key to our future achievements and that the
development of Wales’ food and drink sector
cannot be driven by the Welsh Government
alone. Businesses must take responsibility for
their individual success and our collective future
Andy Richardson
as a sector. We operate in a dynamic and global
Chair of the Food and Drink Wales Industry Board
market where we have to respond to our
customer and trends by bringing new products
to market which help shape those expectations
and demands.
7 | Our ambition to further develop Wales’ food and drink sector
Chapter 1: Our Vision and Mission
The Welsh Government and Food and • T o create and communicate a global
Drink Wales Industry Board (the Board)4 reputation for Wales as a Food Nation
have a shared ambition to build on success. by showcasing our sector through Taste
Food and drink businesses, small and large, Wales/BlasCymru, developing and living our
are succeeding across the country. Our ambition sustainable brand values, widely adopting
is to surpass our achievements to date, moving high production and accreditation standards,
forward from the strong legacy of Towards and celebrating businesses’ successes.
Sustainable Growth and Food for Wales,
Food from Wales, to enter the next decade on The vision and mission contribute to the Welsh
an accelerated journey of success. Government’s strategic goals set in Prosperity
for All – the National Strategy5 and Taking Wales
Forward6 and will be at the heart of our work
Our vision can be expressed simply it is
with food and drink businesses.
To create a strong and vibrant Welsh food
and drink sector with a global reputation
Our journey so far
for excellence, having one of the most
environmentally and socially responsible We have taken strides since Towards Sustainable
supply chains in the world. Growth commenced in 2014. Figure 1
summarises7 progress: the sector has grown
in sales value; exports are growing rapidly, and
Our mission is are diverse in products and markets; businesses
To develop a thriving food and drink industry are diverse8 and are located across all regions
through working collaboratively with the of Wales; products are winning more awards
sector to achieve the following strategic aims: and consumers perceive our products are great
quality and taste fantastic9.
• T o grow our businesses’ scale, value,
and productivity, through targeted Our success has been based on a strong
investment, support, innovation and partnership approach driven by collaboration
co‑operative activity throughout supply between the industry, the Welsh Government
chains, and by creating strong and diverse and the Board. We have created self-reinforcing
routes to UK and export markets. networks, foremost being clusters amongst
businesses10 with mutual interests where potential
• T o benefit our people and society by competitors find win-win opportunities.
providing attractive careers and fair work,
committed to developing the skills of the
workforce, using resources sustainably,
and encouraging businesses to play a part
in addressing public health and poverty.
4 (businesswales.gov.wales/foodanddrink/food-and-drink-industry-board)
5 (gov.wales/sites/default/files/publications/2017-10/prosperity-for-all-the-national-strategy.pdf)
6 (gov.wales/sites/default/files/publications/2017-08/taking-wales-forward.pdf)
7 The most recent economipraisal was published in January 2019 and is available here (businesswales.gov.wales/foodanddrink/sites/foodanddrink/
files/2018%20-%20Food%20%26%20Drink%20Economic%20Appraisal%20-%20FINAL%20%28E%29_1.pdf).
8 (foodinnovation.wales/directory/)
9 (businesswales.gov.wales/foodanddrink/about-us/welsh-food-and-drink-numbers-and-value-welshness)
10 (businesswales.gov.wales/foodanddrink/growing-your-business/clusters)
8 | Our ambition to further develop Wales’ food and drink sector
Figure 1: the state of the food and drink sector and wider supply chain 9 | Our ambition to further develop Wales’ food and drink sector
We have aided, guided and stimulated the sector more limited capacity to respond compared with
through bringing together technical expertise, better resourced multi-nationals.
applied research, and support, drawing on our
food and drink technology centres through For every Brexit scenario we must focus on the
Food Innovation Wales11. We have provided same significant, deep-set challenges which our
insight, know-how, and a helping hand to nurture sector faces. Brexit means we must intensify
success. our focus and effort on the fundamentals which
make the sector successful. We must focus
We have sought opportunities to link to related on improving productivity, whether through
areas: tourism and hospitality, farming and capital investment, better business practice and
fisheries, retail and wholesale. product development, or through better skills and
business leadership. We can and must add more
We have extended our international reach value to our primary products and strengthen
and profile through trade shows and business our routes to market in the UK and internationally.
networks. We should diversify our markets and exports.
We should deepen and broaden the networks
Challenges we face from Brexit and clusters to strengthen our sector’s resilience
Brexit is likely to be an enormous disruptor, and reach. We must build our reputation and sell
and we do not know when it will happen, what it our USPs. We must take firm and rapid action for
will be like, or even if it will happen at all. Some key manufacturing to use resources sustainably and
points highlight the hard realities and potential to contribute widely to Wales’ well-being.
impacts:
• Our food and drink sector is tightly How engagement with the food and drink
integrated into UK and international supply sector has informed this consultation
chains and cannot be insulated from macro To prepare this consultation we have sought
changes to the trading environment. views from stakeholders and businesses since
summer 2018. Conversations and our own
• Around a quarter of the food and drink
analysis have identified many issues, needs and
manufacturing sector labour force are
actions summarised in Figure 2 in relation
non‑UK EU citizens.
to the seven well-being goals at the heart of
• 73% of Welsh food and drink exports by the Well‑being of Future Generations (Wales)
value are to the European Union. Act 201512, legislation which guides and frames the
• Trade agreements with the EU and Welsh Government’s drive and purpose. Figure 2
other countries may threaten or alter simplifies reality as many issues are relevant to
import‑export dynamics, introduce different more than one well‑being goal, issues interact,
tariff and non-tariff costs, and impact on and real life is more detailed and complex.
consumer standards. However Figure 2 shows how the food and drink
sector touches on, and is embedded within,
Anything other than continued access to the society’s fabric and the big challenges we face,
Single Market on present terms with free flow of and its development must take account of this.
labour poses huge challenges. The mainly micro We have grouped the issues by the three parts
or SME size of our business base magnifies the of our mission the delivery of which will have to
challenge because small businesses usually have interlock to be successful.
11 (foodinnovation.wales/)
12 (futuregenerations.wales/about-us/future-generations-act/)
10 | Our ambition to further develop Wales’ food and drink sectorFigure 2: a summary of issues facing the food and drink sector and how they relate to the
well-being goals and the three elements of our mission
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We have found strong support for a new strategic Sustainable Growth has been successful and
plan to continue our work to date. Businesses and we should keep to its course. For them it is a
stakeholders want on-going direction and they question of building on what has been achieved,
want support to focus and rally our shared effort, going further faster and capitalising on our gains,
energy and resource. Most believe Towards rather than a radical change of direction.
11 | Our ambition to further develop Wales’ food and drink sectorOur key actions and targets • A
ction focus – our support to businesses
We have concluded from our stakeholder input benefits our people and society as well
and our own experience that we should continue as the individual business. We seek a
on the path started by Towards Sustainable partnership with businesses where our
Growth but with sharper focus on what we have support helps them and in return the
found works and setting key goals, actions and business thrives and operates in ways which
targets for the three parts of our mission. benefit its workforce, the community and
Wales as a whole.
To simplify this complexity, we will prioritise
T arget 3: to increase the number of food
four main focal points for action and we will set
and drink sector businesses committed to
five headline targets. These are summarised
actions that benefit the people of Wales
below and illustrated in Figure 3:
(this complex target is expanded in Figure 3
• A
ction focus – to grow the sector’s scale. and explained in Annex 1).
We want more businesses to start up and
more to survive longer. We want our micro • A
ction focus – To promote Wales as a food
businesses to become small businesses, nation. We will focus on living and marketing
our small to become medium, and more to sustainable brand values, celebrating
become large. We want the sector’s total our successes, growing our exports and
scale, and the diversity of its markets in the markets to support growth and to project
UK and export markets to grow. We want our international profile. High production
to attract more foreign direct investment. standards and product development are
We must add more value throughout the integral to our image and also support
supply chain and seek multiplier effects. productivity and sector scale improvements.
T arget 1: Every year the turnover value of the T arget 4: 300 businesses in the food
Food and Drink Sector will grow annually to and drink manufacturing sector to hold
match the change in the Consumer Price appropriate accreditation for their business
Index (CPI), plus an additional 2%. purposes by 2026.
Target 5: 95% of food and drink sector
• A
ction focus – To improve the sector’s
businesses to have a food hygiene rating
productivity. Improving productivity is
of 4 or 5 by 2026.
key to prosperity and long term success.
Our performance is not good enough.
We must focus and investment in skills
and people, capital assets, better business
practice, strong business leadership and
business planning, and apply innovation
and research evidence.
T arget 2: the gross value added per hour
worked of the food and drink sector will
grow annually.
12 | Our ambition to further develop Wales’ food and drink sectorFigure 3: illustrates how the vision, mission and targets relate to each other. We explain the targets
further in Annex 1
Vision, Mission, Action and Targets
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13 | Our ambition to further develop Wales’ food and drink sectorDelivery of proposals contracted partners. We recognise and respect
Our mission elements and key goals and targets that most businesses want to play their part and
interlock and we will take a holistic approach commit to standards and activities which further
to advance the food and drink sector in a Wales’ well-being. Our emphasis will be on
balanced way. sustainable long term growth, not short-termism.
The Welsh Government and the Board will We propose building on the successful model of
be facilitators and catalysts to this approach. delivery developed under Towards Sustainable
The Board is publicly appointed, appointees Growth which combines Welsh Government
bringing a wide range of knowledge and direct support to businesses, technical advice and
insight. The Board will be an ambassador of knowledge transfer delivered through a range of
the sector, and to the sector. It will champion contracted partners.
the sector in Wales and outside Wales. It will
In our transition to the new strategic plan, and
seek strategic connections and will facilitate
throughout its life, we will develop operational
interest and investment in our businesses and
plans and processes for delivery. We may
products. The Welsh Government will provide
publish some of these where that would help
executive support to the Board and resources to
inform others.
support the sector to grow and thrive. As joint
partners we will scrutinise progress and how We propose to focus on the period 2020-26.
the strategic plan evolves so it remains relevant We favour an intermediate length timescale
and focussed. The Welsh Government will work because it is long enough to organise and take
with the other administrations in the UK where actions which make a material impact but not so
common approaches or change are necessary long as to be regarded as infinite and not relevant
or beneficial. to the present.
Where we help businesses we will do so in
line with the principles of Prosperity for All: The wider supply chain
Economic Action Plan13 that support is reciprocal Food and drink is a manufacturing sector in
in the sense that businesses and partners help a supply chain beginning with agriculture and
our nation’s well-being. Support to businesses, fisheries, and ending with wholesale, retail,
whatever form it takes, will be conditional on and the food service and hospitality sectors.
that. The expectations we have of a business, However, this consultation is not about these
and the specific requirements of any support other related sectors.
arrangement, will depend on the circumstances
of the support offered; its scale, whether there Our proposals for farming are the subject of
has been previous support, the size and nature Sustainable Farming and our Land14. We are
of the business and its stage of development, developing a new fisheries policy – Brexit and
potential multiplier effects, and the nature of our Seas15. Both farming and fishing operate
the support requested or offered. This will apply in complex regulatory environments and have
whether it is direct support from the Welsh distinctive issues specific to them. It would not be
Government or support through one of our practical to adopt one strategic and development
13 (gov.wales/prosperity-all-economic-action-plan)
14 (gov.wales/sites/default/files/consultations/2018-07/brexit-and-our-land-consultation-document_0.pdf)
15 (gov.wales/marine-and-fisheries-policies-wales-after-brexit)
14 | Our ambition to further develop Wales’ food and drink sectorplan for all three sectors, but it is our goal that or how funding will be repatriated to Wales.
their future development is strongly linked. Welsh Ministers are clear that leaving the EU
should not mean any reduction in the funding
Retail is another important element of our available to Wales.
Foundational Economy. Welsh Government is
working with this sector in partnership with With on-going austerity imposed by the UK
businesses and the Welsh Retail Consortium. Government, the Welsh Government’s budget
We propose to further our work to connect must meet many growing demands with tighter
our food and drink manufacturers with retailers resources. Against this complex backdrop we
to develop new market opportunities and must recognise the current support and funding
consolidate gains already made. landscape may change and realise the proposals
in this consultation will depend on wider funding
The food service and hospitality sector is decisions which are beyond the scope of this
significant in its own right. We are already document, and indeed, Welsh Government.
supporting food and drink manufacturing
businesses to supply it, including food tourism. In this challenging climate, we should consider
Tourism is also a key part of our Foundational the scope for the actions we propose to be
Economy and one of our main ways to project scalable, so they can operate within available
our profile internationally. We will build on the budgets under a range of plausible scenarios for
progress made through the Food Tourism Action the future. All the actions we support must be
Plan16 as the Welsh Government continues its clearly able to deliver good value for money for
work with the tourism sector and as we take the people of Wales. Planning in the context of
forward our International Strategy. the uncertainty we now face is extremely difficult
but also essential. Our plans must be flexible and
Financial resource responsive to changing financial circumstances.
Brexit means change to how support for Wales’
food and drink sector may be funded and how Summary
much money is available. Historically, the Rural We commit to providing strong leadership and
Development Programme for Wales17, funded support to the food and drink manufacturing
by the EU’s Common Agricultural Policy has sector. We will publish on-going updates on
been our main mechanism to support our food progress against the five targets and wider
businesses, whether through direct investment indicators. Our support will be contingent on
grants or support-in-kind services, providing providing something for something in return
knowledge transfer and advice or supporting for Wales’ benefit – there will be gateways for
events. What replaces the Common Agriculture different support levels conditional on specific
Policy is the subject of Welsh Government’s commitments being met.
proposals in Sustainable Farming and our Land.
We look to businesses who work with us to
The future financial settlement for Wales remains commit to high standards and values which
uncertain. While the UK Government has pledged they share throughout the whole supply
to maintain cash levels of farm support until chain. A business will show leadership to other
2022, we are yet to receive any clarity from the businesses and represent our shared values
UK Government on what happens thereafter enshrined in our vision and mission.
16 (gov.wales/food-tourism-action-plan-2015-2020)
17 (ec.europa.eu/agriculture/sites/agriculture/files/rural-development-2014-2020/country-files/uk/factsheet-wales_en.pdf)
15 | Our ambition to further develop Wales’ food and drink sectorQuestion 1 of 20 What is your feeling in relation to our proposed vision and mission? Question 2 of 20 If you do not agree with this proposed vision and mission, what would you do differently? Question 3 of 20 Any other comments? 16 | Our ambition to further develop Wales’ food and drink sector
Chapter 2: Developing our Businesses
To realise our vision we intend to grow our businesses’ scale, their value and productivity. We will
do this through targeted investment, soft support and advice, promoting innovation, stimulating
co-operative activity throughout supply chains, and by creating strong and diverse routes to UK
and export markets.
We are interested most of all in improving business productivity, survival rates and the ambition
to succeed. We will prefer investment in and support for quality businesses which have ambition
to deliver our shared vision and values.
Success will be measured by achieving two targets.
• T
arget 1: Every year the turnover value of the Food and Drink Sector will grow annually
to match the change in the Consumer Price Index (CPI), plus an additional 2%.
• T
arget 2: the gross value added per hour worked of the food and drink sector will
grow annually.
Growing our scale and value Improved productivity
Our sector’s value has grown since 2014. Productivity improvement is essential for long
We want to build on this. We want to increase the term individual business success and underpins
food and drink business birth and survival rate, the sector’s collective prosperity and Wales’
to help micro businesses to become SMEs, and well‑being. We prize productivity gains as
for SMEs to become large. We want to attract the most important aspect of developing our
inward investment and to grow the value of our businesses and we set Target 2 to reflect this.
exports. The sector’s growth depends on many
factors beyond our control so we will measure We see investment in capital – facilities,
progress against the backdrop of changes to the automation, R&D, and people at all levels, as vital
Consumer Price Index (CPI) which we judge is the elements. In offering support to a business we
best bench mark for performance. We want to will want to understand how it will contribute
do better than matching CPI changes and have to improving productivity, and add value and
set an ambitious Target 1 to outperform it. multiplier effects in the supply chain.
Our primary market is the UK and will remain the Developing our networks and stronger supply
UK because of the size of the population and its chains through clusters
geographic proximity. However we want to grow All businesses in the supply chain benefit from
our export markets too, not only to contribute to reliable connections between them. We have
our scale and value but to project Wales to the found our cluster programme has brought
world and to diversify our customer base. practical benefits – shared costs, joint ventures,
idea and solution sharing. Clusters strengthen the
We see strong business planning, investment in
resilience of our food and drink manufacturing
capital assets and people at all levels, production
base to setbacks and shocks by helping develop
efficiency, and clear routes to markets as essential
strong supply chains and mutually reinforcing
for success. In offering support to a business we
relationships. Clusters are generating a sense of
will want to understand its ambition to develop
mission and a growing team spirit to succeed as
and how it will achieve its goals.
a sector.
17 | Our ambition to further develop Wales’ food and drink sectorWe will widen the cluster initiative, seeking to Cluster members are becoming our elite
increase the number of participating businesses partners where we will focus our advisory
and to deepen their engagement. We will focus support. We will make available market and
on creating stronger links and adding value technical information, and research routes to
throughout supply chains. Doing so will build market to identify opportunities and ways to
a web of supportive relationships, links which overcome barriers to entry and growth. We will
make our businesses and food system more provide problem solving capability, help develop
resilient to setbacks, add value to our products, new products, facilitate co-operation between
and create ‘golden threads’ showcasing our businesses, and help them innovate through
sustainable brand values and USPs throughout applied research. We will promote clusters to
the supply chain. potential buyers18 of Welsh products as gateways
to our production network. Conversely we will
We will support new cluster groups where market clusters as potential buyer networks
market research suggests that would be for our farming and fishing industries to supply
worthwhile. We will terminate support for their produce into the manufacturing sector.
groups if they do not meet our values, or if they We will also actively encourage our clusters to
are no longer relevant. We will develop and collaborate internationally in initiatives such as
support clusters which are thematic or based on the European Atlantic Arc programme to help
businesses having a common regional location. businesses develop further.
18 Retail and wholesale buyers, the service and hospitality sector, export agents and consolidators, and public services which place food procurement
contracts.
18 | Our ambition to further develop Wales’ food and drink sector19 | Our ambition to further develop Wales’ food and drink sector
Food Innovation Wales and Future Foods force development through training people.
In support of clusters and stronger supply We must also face the uncomfortable truth that
chains we will further Food Innovation Wales19, automation can mean fewer jobs in an individual
our partnership of food technology centres, business. The way to respond to this is not to
which may be complemented by the Future stand still and become less productive and
Foods20 initiative led by IBERS. Food Innovation uncompetitive. The way to respond is to grow
Wales and Future Foods will work directly with that business and the whole sector. More and
businesses, but by offering bespoke advice, stronger businesses in strong clusters and supply
and with access to development and business chains can collectively create more employment
incubator facilities in themselves, they are a selling at higher skill levels.
point to investors and food and drink businesses
Another part of the solution is to attract more
to locate to Wales.
people into the sector. Our challenge is food and
drink manufacturing is generally not perceived
Investing in our workforce
as a great career or offering satisfying, well paid
We face a crisis. We need to attract 7,900 new jobs. Only 15% of young people would consider
entrants into the food and drink manufacturing working in the sector. It is vital the sector attracts
sector by 202521. The roles we need range and retains a skilled workforce. We must improve
from machinery operatives to graduate food perceptions and people’s understanding of
technologists. Our risk is even worse because the opportunities available, that the sector can
around a quarter of our workforce are non-UK provide great careers and satisfying jobs. We have
EU nationals22 who understandably may be less already begun initiatives to facilitate entry into the
inclined to work in Wales due to Brexit. The UK industry and promote skills development. We will
Government’s stance on setting immigration build on these. We will further the Welsh Skills
criteria to work using a crude salary threshold is a Pledge23 being championed by the Board, where
big risk. It fails to take account of skilled workers in our businesses are signing up to pledge their
the food and drink industry who may be paid less. active support24. We will promote the food sector
We face an urgent challenge to attract and retain in more general careers activity like Skills Cymru25.
enough suitable people. To address businesses’ particular needs we will
continue26 Food Skills Cymru27 which delivers
Part of the solution is to increase automation
training geared to food and drink manufacturing.
and uptake of industrial digital technology which
are often important for improving productivity. Across Wales three Regional Skills Partnerships28
We will prioritise support to businesses which analyse economic challenges and likely growth
want to do this. Automation usually means jobs areas to identify the skills needed in the
become more technical but rewarding and better workforce.
paid, which is a good thing for individuals and
communities. Automation also requires work
19 (foodinnovation.wales/)
20 (gov.wales/ps73m-eu-backed-package-boost-wales-food-sector)
21 Research undertaken by Brookdale Consulting on behalf of the Welsh Government.
22 Research undertaken by Brookdale Consulting on behalf of the Welsh Government.
23 (businesswales.gov.wales/foodanddrink/sites/foodanddrink/files/180209 Skills Pledge Booklet A5 ENG.pdf)
24 (tasty2019.lmdev.co.uk/pledge)
25 (prospectsevents.co.uk/)
26 At least until September 2023 when currently allocated funding ends.
27 (www.foodskills.cymru/)
28 (businesswales.gov.wales/skillsgateway/skills-development/regional-skills-partnerships)
20 | Our ambition to further develop Wales’ food and drink sectorDeveloping our Businesses
Glanbia Cheese
When you next bite into a pizza, which you have employers in conjunction with the National
bought from either a restaurant, a take-away or Skills Academy for Food and Drink along with
from a supermarket, the chances are the mozzarella representatives of Welsh Government funding
on top will be from Glanbia Cheese in Llangefni, bodies and Reaseheath College. Heather says:
Anglesey, Europe’s largest mozzarella cheese “We developed the Industry Approved Level 2
manufacturer. Dairy Operations training (the second cohort has just
Glanbia Cheese Ltd. is a joint venture between Leprino begun) in recognition of the diminishing knowledge
Foods in Denver, Colorado, and Glanbia Plc in Kilkenny, within our sector – we wanted specific training to
Ireland, supplying customers in both the food service meet the exact needs of our businesses.
and B2B sectors with over 90,000 tonnes of cheese.
“The collaboration with other dairy processors in
Senior HR Manager Heather Broughton is hot on the area is exceptional and enhances the ability to
training: “It’s critical we have skilled and knowledgeable design a programme which meets all our needs,
employees who can adapt and change to the on-going
while strength in numbers enables us to provide cost
demands of customers, new food legislation and the
effective, Welsh Government supported training.”
business. Continual investment in internal and external
training for employees enables them to grow and A Level 3 Dairy Operations Science and Technology
develop to their full potential. We believe that training course is now in development, providing an on‑going
helps motivatation, and shows our desire to provide a career path for employees. Heather again: “The food
sustainable and satisfying occupation and a long-term industry can provide a fantastic career path for
career path.” so many functions and disciplines. It is critical that
Heather herself is Vice Chair of the Wales Dairy we continue to grow and provide good quality,
Industry Skills Partnership, a group of Welsh Dairy technical jobs for our local communities.”
21 | Our ambition to further develop Wales’ food and drink sectorTheir work informs further education and support, equity and private investment.
apprenticeship provision. We will engage with Our operating model will put Business Wales
the Regional Skills Partnerships to ensure Finance31 at the forefront as a gateway to
the needs of the food and drink sector are advice and support for businesses, with the
understood. We must ensure provision is relevant Development Bank of Wales32 an important
and develops to meet the sector’s needs. With investment partner. The Board will play a
this in mind the Welsh Government will soon pro‑active role as ambassador and networker
commence reviewing the apprenticeship for the sector to help attract investment.
framework for food and drink.
Under Towards Sustainable Growth, we have
Skills training is not just technical. We will also attracted significant foreign direct investment.
focus on training for management and leadership We will continue to proactively work with
skills essential for business success. Our decisions potential investors, using research, trade shows
whether to support businesses will take account and targeted relationship management to
of their commitment and progress to training and attract them. We will provide advice about the
developing their workforce at all levels. Welsh and UK markets and finding a business
property, with the support of our international
Financial investment in businesses office network. The Welsh Government’s coming
We will invest in businesses and stakeholders who International Strategy will be integral to this work.
support them. Investment will be on the merits
of the business case including how it helps Wales’ Boosting exports
well-being. Growing exports is part of our plan to develop
our businesses but we see them primarily as
We will develop our investment grants to offer being about promoting Wales as a Food Nation
flexible financial support. We want to help on a global stage. We discuss exports in
businesses of all sizes and encourage start-ups, Chapter 4.
and support their growth journey. Our main
grants, the Food Business Investment Scheme29 Summary
and Rural Business Investment Scheme30 have
We commit to support ambitious viable
invested in many new capital projects and have
businesses which share our values. We will invest
been well received, as has support for inward
directly in them and we will attract and facilitate
investment from European Regional Funds.
investment from others. We will focus on growing
However our potential may have been limited by
our scale and on productivity improvement.
working within European rules and we will look to
We will stimulate and grow networks and clusters
rationalise and update what we offer when these
through our supply chains, linking primary
programmes end so we have adaptable and
production to manufacturing, through to
targeted grant support.
retail/wholesale and the service sector,
We see direct grant as a minority of investment and adding value and enhancing our collective
support. Our bigger aim is to help businesses product offer. We will provide comprehensive
access other forms of finance such as bank support for technical matters, product
29 (gov.wales/food-business-investment-scheme-guidance)
30 (gov.wales/rural-business-investment-scheme-food-guidance)
31 (businesswales.gov.wales/businessfinance/types-finance-and-how-apply/development-bank-wales)
32 (businesswales.gov.wales/businessfinance/types-finance-and-how-apply/development-bank-wales)
22 | Our ambition to further develop Wales’ food and drink sectordevelopment, applying research and innovation. improve their productivity and adopt recognised
We will research new and existing markets to best business practices, to share and contribute
find the best opportunities and to create strong to our well-being goals, working collaboratively
routes to them. We will help businesses invest in with their peers and supply chains to develop
their workforce. strong business networks rooted in our
communities.
In return we expect businesses we work with to
be ambitious, have a long term and structured
approach to their development, to commit to
Question 4 of 20
What is your feeling in relation to our proposals?
Question 5 of 20
Do you agree with the areas we have identified for support and the commitment we ask businesses
to make?
Completely agree
Agree
Neither agree/disagree
Disagree
Completely disagree
Question 6 of 20
If you do not agree with the areas we have identified or commitments, what would you do differently?
Question 7 of 20
Is there any additional activity needed which we have not identified?
Question 8 of 20
Can you contribute to achieving our proposals?
23 | Our ambition to further develop Wales’ food and drink sectorDeveloping our Businesses
Daffodil Foods
Active in the locally sourced dairy sector in north knowledge, skills and networks. The support has
Wales from 2011, Daffodil have scooped a number of been amazing.”
awards, made a lot of friends and landed some great Looking to bring on youngsters in the industry,
business, including supplying all Welsh hospitals with Lynne took on a local student studying Food Science
a bespoke strawberry and vanilla recipe yoghurt for at Cardiff Met, and was really impressed with her
the past five years. qualities. With home team support, Lynne now
The search is now on for a production unit to make looks forward to taking her Welsh Clotted Cream
Daffodil’s delicious yoghurts and creams from into international markets, and eagerly awaits this
Welsh milk, and Welsh Government is proving year’s TasteWales in March, after the previous
its worth in supporting the company’s ambitious meet‑the‑buyer event netted her a UK-wide contract
growth plans. Founder Lynne King brought 20 years with Lidl, following years of fruitlessly banging on the
dairy experience to bear when she established multiple’s door.
Daffodil. “The wide range of help on offer has been Lynne says: “Welsh Government’s support is sharply
brilliant,” says Lynne. “We’re seeing the benefits tailored to what we really need as producers, and I’m
of the Innovation Competition grant, we’ve joined confident that with a strong Welsh brand that’s built
the Fine Foods Cluster, the Export Club and the on provenance, Daffodil, and the sector generally,
Commercial Skills Academy to broaden our business is in good shape for the future.”
24 | Our ambition to further develop Wales’ food and drink sectorChapter 3: Benefiting our People and Society
Our mission is the food and drink sector benefits our people and society through providing
fair work, using resources sustainably, and businesses play a part in addressing public health
and poverty.
This part of our mission is diverse and complex. It does not translate well into simple targets but
we think a target, however imperfect, is valuable to show our intent and provide some direction.
For simplicity we propose one target which has several dimensions. We are exploring the detail
of the target further and would like your views.
Target 3: to increase the number of food and drink sector businesses committed to actions
benefitting the people of Wales widely through:
• W having signed the Skills Pledge by 2026.
• X having signed the Courtauld Agreement by 2025.
• Y
% of businesses in the sector paying all their employees at least the Welsh Living Wage
by 2026.
• Z businesses contribute to the School Holiday Enrichment Programme.
(Where W, X, Y, and Z are numbers not decided yet.)
Fair work progression; a safe, healthy and inclusive working
The Welsh Government strives for social justice environment; and legal rights are respected and
and expects business to play a strong part in given substantive effect. Equality and the active
return for our support. Support to businesses promotion of equality and inclusion are integral
will be conditional on them demonstrating they to all these outcomes and we see no trade-off
are Fair Work Employers, as defined by the Fair between them.
Work Commission in its recent report Fair Work
Currently 65% of employees in the sector are
Wales33. The Board regards fair work as sensible
paid at least the Welsh Living Wage34. We will
business practice in line with a business’ long
require businesses we support to commit to
term success.
work towards paying the Welsh Living Wage by
Fair Work is where workers are fairly rewarded, 2026 and to encourage their supply chain to do
heard and represented, secure and able to the same.
progress in a healthy, inclusive environment.
There is opportunity to use public procurement
We understand achieving Fair Work is a
in a smarter way to support other initiatives
continuous journey and businesses will start
such as the Better Jobs Closer to Home
in different positions. But we expect to see
campaign35. These have involved the use of
demonstrable active effort by businesses towards
procurement legislation to reserve suitable
outcomes of: fair reward; employee voice
contracts, enabling existing and new supported
and collective representation; security and
factories to provide employment and training
flexibility; opportunity for access, growth and
opportunities for the most disadvantaged people
33 (gov.wales/fair-work-wales)
34 The Welsh Living Wage is the same as the Real Living Wage.
35 (gov.wales/signs-positive-better-jobs-scheme)
25 | Our ambition to further develop Wales’ food and drink sectorin a local area. No contracts relating to food have the sourcing of ingredient inputs, energy and
been established so far, but we see opportunity water use, logistics, and waste.
to explore and develop this.
We are committed to sustainable use of
We will also expect businesses receiving our resources and by law to reduce Wales’ carbon
support to move towards adopting the Welsh footprint by 80% by 2050 achieved through
Government’s Ethical Employment in Supply a series of carbon budgets. Our support to
Chains36 code of practice and to encourage other businesses will be conditional on them being
businesses in their supply chain to adopt it. The increasingly carbon efficient and helping achieve
Code is designed to ensure that workers are A Low Carbon Wales37.
employed ethically and in compliance with both
the letter and spirit of UK, EU, and international We will favour support to companies which
laws. The Code was designed for organisations are committed to using ethically sourced palm
involved in public procurement and we appreciate oil in line with Welsh Government’s policy38.
a nuanced approach to adopting it will be
Wales is a global leader when it comes to
necessary depending on a business’ size and
managing our waste. In the 20 years since
stage of development.
devolution, we have become first in the UK,
second in Europe and third in the world in
Careers and Skills recycling. Later this year we will be issuing
Attracting people into food and drink our Resource Efficiency Strategy and Circular
manufacturing and continuing to train them Economy Route Map for consultation. This will
is a paramount for the sector’s productivity show the next steps we will take towards
and success. Good jobs benefit individuals, becoming a “zero waste nation”.
their families, and our communities and society.
We have already outlined the actions we propose How food waste is managed is a key factor in
to take in Chapter 2. Adding to that, we will also terms of reducing greenhouse gases. Our food
continue to extend approaches we have trialled and drink industry are a big part of our ambitions
in the Valleys which we are now extending to and businesses across Wales have been taking
north Wales – namely, businesses signing the important strides to change behaviours to reduce
Skills Pledge commit to reskill unemployed people their carbon footprint, finding alternatives for
for immediate jobs in the food and drink sector surplus food and stopping this from going to
rather than use agency labour. landfill and also working with our partners to get
advice and support on how to use their resources
Sustainable use of resources more efficiently.
The rapidly deteriorating condition of Earth’s Taking action to be more resource efficient
natural resources is well publicised. The food can save businesses money and also create
and drink sector impacts natural resources in new economic opportunities. We will expect
many ways such as the carbon footprint of the the businesses we support to reduce waste in
manufacturing process, packaging materials, areas such as the manufacturing process and to
contribute to waste reduction throughout the
36 (prp.gov.wales/docs/prp/ethicalcode/codeofpracticeethicalemployment.pdf)
37 (gweddill.gov.wales/docs/desh/publications/190321-prosperity-for-all-a-low-carbon-wales-en.pdf)
38 (gov.wales/welsh-government-help-end-use-unethical-palm-oil)
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