We're now moving on to item 6, a statement by the Minister for Rural Affairs and North Wales on BlasCymru/TasteWales.

Thank you, Chair. I am pleased to update Senedd Members on BlasCymru/TasteWales 2023. The Welsh Government launched the event back in 2017 and it has taken place every two years since then, even during the COVID-19 pandemic. The theme of the event reflected the challenges the industry continues to face, but also its greatest strengths: 'Powerful together: From challenge to success. The role of resilience, innovation, and optimism.'

I'm grateful to the guest speakers who joined us. Shelagh Hancock, the chief executive officer of First Milk, presented on the challenges for agricultural and food businesses and outlined her own organisation's approach to sustainability. Chris Hayward from the Institute of Grocery Distribution also shared a wide range of fascinating retail and consumer insights for 2024.

At the heart of BlasCymru is brokerage between Welsh food businesses and major domestic and international buyers. We believe Government can play an active role in supporting food businesses in Wales to develop their credentials in terms of sustainability in ways that help to make them an attractive prospect for major buyers in the UK and abroad. This not only helps the Welsh economy, but in promoting sustainable and responsible business practices, we promote Wales's wider well-being at the same time.

At BlasCymru, we are able to draw in those priority international and domestic buyers to travel from across the UK and the world to the International Convention Centre Wales in Newport because of the reputation for excellence amongst the Welsh food businesses who showcase there. Over the two days, Wales welcomed 276 trade buyers, including 30 international buyers from 11 countries. A total of 122 established Welsh food and drink businesses took part in the event, accompanied by 15 rising stars—new business start-ups in Wales who have developed their businesses in the last 12 months.

The brokerage is carefully scheduled, with planning around those meetings taking place for many months in advance of the event itself. At the event, 2,100 bilateral meetings were held between food businesses and major buyers. On the latest available information provided by attendees at the event, the brokerage meetings generated confirmed and potential sales of over £38 million. This is the highest total for a BlasCymru event and will increase over time as conversations continue to bear fruit.

Given the bleak economic context we face, this is an extraordinary vote of confidence in the Welsh food sector. In fact, the Welsh food and drink sector has generated a larger percentage in export growth than comparable regions of the UK. The success of the sector within domestic markets is also incredibly positive. A recent retailer audit found the number of stock-keeping units across 23 Welsh stores had increased from 1,250 to 1,966—an increase of 57 per cent since 2019. The event included exhibition zones to raise awareness of the support available from the Welsh Government and other sources. Welsh food businesses were also provided with the opportunity to exhibit new products, and 203 new products were on show at the event, demonstrating world-class innovation and quality.

Wales has for many years been very successful in securing protected food status for products. Protected status recognises and guarantees a product's unique characteristics and authenticity. There were 14 product ranges protected by the geographical indication scheme showcased at the event—all fine ingredients from the mountains, marshes and pastures of Wales. These amazing products rely on a healthy natural environment, and in protecting these food products we help to secure a positive future for our communities too, reflecting the importance we place on landscape and culture for our well-being. Examples include PGI Welsh lamb and PGI Welsh beef, as well as regional brands such Gower salt marsh and Cambrian hills lamb. A special edition of National Geographic magazine focused on these protected foods, precisely because of the sense of place that our protected food products convey. I was encouraged by the level of media coverage, with 24 national and regional journalists in attendance, and significant coverage across all channels, helping to spread the word about sustainable Welsh produce.

BlasCymru is the centrepiece of our vision for the food and drink industry in Wales. The goal on which this vision is based is

'to create a strong and vibrant Welsh food and drink sector with a global reputation for excellence, having one of the most environmentally and socially responsible supply chains in the world.'

We see fair work, environmental sustainability and economic success for the sector as being inherently linked. The success of BlasCymru demonstrates this working in practice. The event helps us to encourage more food businesses to engage in those dedicated support programmes to help them enhance social and environmental outcomes, to promote skills and employability, and to develop their response to the climate and nature emergencies.

One of the most important ways we can achieve this is reflected in the event's theme of 'powerful together', and that's through our cluster networks. The network brings together suppliers, academia, and Government around common interests. Our food and drink sustainability cluster, for example, includes 100 business members and 30 support organisations. By providing one-on-one support for businesses seeking B Corp accreditation, we support delivery of the social benefits for Welsh communities, and, in doing so, help the businesses themselves secure new market opportunities.

At the event, we presented a series of new digital tools and networks to help businesses increase their sustainability. This included our new sustainability and decarbonisation training programme and an online food and drink sustainability toolkit for businesses. It also included our climate change e-hub, which uses data we've brought together from our support programmes to enable businesses to benchmark themselves against those that have been at the forefront in making sustainability work within their supply chains. The event was an opportunity to engage businesses in the support available through Project Helix, our flagship food innovation scheme, which provides tailored support to businesses across all areas of their production process and supply chain. Since its inception in 2016, Project Helix has assisted 703 enterprises, sustaining 3,600 jobs, and creating 683 new jobs. The overall financial impact to the food and drink industry is assessed to be in the region of £355 million.

The success of the latest BlasCymru event is a huge credit to the impressive achievements of the Welsh food sector. It also reflects the importance of Government having an industrial strategy, for the benefits not only to businesses but for the wider community as well. Our investment in BlasCymru/TasteWales and all of the support programmes we offer is being repaid many times over. Just as importantly, the fact the Government has stepped in to take an active role means we are in a position to promote wider benefits to the people of Wales as well.

We believe the BlasCymru events are a living example of how it is possible, by working together with others, for Government to promote economic growth and wider well-being through pursuing our core values of sustainability and fair work. These values are not contrary to that success—they are the basis of it. Diolch.

Samuel Kurtz, spokesperson for the Conservatives.

Diolch, Llywydd dros dro. I would like to thank the Minister for bringing forward this statement today. I am pleased to see and, of course, welcome the value that the Welsh Government places on our fantastic Welsh food and drink industry. I know this statement is not only a time to reflect on the industry as a whole, but also a time to reflect on the value of BlasCymru to our nation and our exporting ability and networking opportunities for industry stakeholders. I know it is seen as a flagship trade event of the Welsh food and drink industry as the largest of its kind, where we see Welsh food and drink producers, national and international buyers and food industry professionals come together in one forum. BlasCymru 2023, as we've heard, gave over 120 Welsh food and drink businesses the opportunity to meet and ignite discussions with over 270 trade buyers, and saw the unveiling of 200 new products. I know that the previous biennial BlasCymru event was held in 2021, and since then we have seen huge progress across the UK's export sales for the food and drink sector. So, Minister, whilst we note that an impressive and promising number of stakeholders attend and engage in meetings of BlasCymru every other year, I wonder if you could outline how the success of these functions are measured in terms of output and cost-effectiveness.

Despite prolonged and drawn-out criticisms from this Government of our leave of the EU, the value of our Welsh food and drink exports to the EU reached record highs in 2022, when they hit £594 million—a £130 million increase from 2021. Alongside this, the industry was also able to bolster its non-EU exports in the same year, when they reached £203 million—up from £176 million the year previous. But, Minister, what I find most notable when looking at the data on our exports, which have notably been really promising, is that the highest value export category for Welsh food and drink in 2022 was meat and meat-related products, totalling in at a value of £265 million. This is a 42 per cent increase from 2021, and something that, as we know, is down to the relentless hard work from our Welsh farmers and our families. No farmers, no food. And while it is great to see both you and your Government support and promote our food and drink sector, it will be seen as somewhat garish in the light of the damning analysis on food production that the sustainable farming scheme would have. Alongside a slashed budget, which clearly does not support the sector as we need it to, Welsh Government's commissioned impact assessment highlights, quite bluntly, the negative impact the sustainable farming scheme would have. The modelling has predicted a 122,000 reduction in Welsh livestock units, which, in effect, is a 10.8 per cent reduction in Welsh livestock numbers; a 11 per cent cut in labour on Welsh farms, which is the equivalent of losing 5,500 jobs; and, finally, a £125 million hit to output from the sector, and a loss of £199 million to farm businesses income. That's an income loss of 85 per cent. So, rightfully so, NFU Cymru have commented on the fact this data is quite frankly shocking, and it is utterly contradictory to the sentiments of the SFS consultation of 'keep farmers farming'. So, with this in mind, Minister, I wonder if you could lay out how this Welsh Government aims to continue to support the Welsh food and drink sector, moving into 2025, considering the bleak backdrop of budget cuts and uncertainty that has been forced upon our farming sector. Yet, it is our farmers that are one of the key components in ensuring the survival of the food and drink industry. And given now the Welsh Government are scratching around with what to do with Gilestone Farm following an almighty mess-up, perhaps you could use the farm as a demonstrator for the sustainable farming scheme if you're that confident in the scheme's success.

Now, whilst we all understand the difficulty of the financial pressures of not only this Government, but other Governments around the world, our Welsh food and drink industry must be supported as an economic, cultural and societal priority. We're not only talking about Welsh produce, but our Welsh consumers who, according to the NFU's research, which I've raised before in this Chamber only last week, demonstrated that 82 per cent of people support the Welsh Government in providing financial support to farmers to produce food.

So, finally, Minister, one domestic area that our food and drink sector aligns very closely with, especially across my constituency of Carmarthen West and South Pembrokeshire, is the tourism industry. I'd like to ask, therefore, what actions the Welsh Government is taking to ensure that both sectors benefit from one another, so we utilise all that Wales has to offer effectively across different sectors. Our Welsh food and drink industry is intrinsically linked with our farmers, our culture, our heritage and our history. Whilst I wholly share your ambitions for BlasCymru and the wider food and drink industry here in Wales—and I congratulate all stakeholders for some fantastic progress over the last few years—to achieve its full potential it cannot have the rug pulled from under its feet with an agricultural policy that undermines sustainable food production. Diolch, Llywydd dros dro.

Well, I would certainly agree with that last point, and I can assure you that that's not going to happen. I mean, the analysis that you referred to—and I did have a conversation with NFU Cymru around it—as I say, is very old data, and there will be further economic analysis ahead of the sustainable farming scheme's final design next summer.

But to go back to BlasCymru, I welcome your very positive comments around it. As you say, it's a biennial event; this was the fourth BlasCymru, and every one just gets better and better. And certainly, the data we've received, and I mentioned in my oral statement, is that £38 million of new business—. I was at a bakery, actually, in Ken Skates's constituency a couple of weeks ago and they were talking about the conversations they'd had, and they were still following them through. I go back to what I was talking about, the brokerage: there's a huge amount of thought put into that brokerage, and the people that our food producers meet during BlasCymru. So, I think it was 28 buyers that this particular company had met over the two days. Now, if you think how you would reach 28 buyers—that would take a huge amount of work for a very small business to be able to go out there, meet those buyers, have those conversations. So, for me, it's the brokerage that I mentioned—it's absolutely at the heart of BlasCymru—but I've just seen it grow and grow over the four events.

You've got to try and keep it fresh, of course, and do different things. So, this year, we moved from the multiple individual showcases, for instance, that we'd had previously, and we had three thematically integrated zones, and we had guided tours of the brokerage as well, and all the produce was on display, including the new products, of which there were over 200. We've also had a very extensive seminar programme, because, again, for businesses to come along to BlasCymru, they're giving up their time, particularly if they're a small company, which so many of our food and drink producers are. These new innovations were really well received, and it's good to be able to build on those.

You referred to exports, and I do think we punch above our weight in relation to exports, but if you look at the countries that our exports tend to go to from a food and drink point of view, France is now the highest value destination for Welsh food and drink exports, at £150 million. Other top destinations include the Republic of Ireland, Belgium, the Netherlands and Germany, so there's a bit of a theme there—our closest neighbours, of course, are part of the European Union.

You're quite right about meat and meat preparations: that makes up 33 per cent of the food and drink export value. And that's followed by cereal and cereal preparations, with a 20 per cent share of all food and drink exports. I absolutely agree with you: no farmers, no food. It's really important that we continue to support our farmers, and as I think I said to you last week in my oral questions, the analysis, or the survey that NFU Cymru came forward with, didn't surprise me at all. I absolutely understand that the people of Wales accept that we have to continue to support our farmers.

I call on Llyr Gruffydd, spokesperson on behalf of Plaid Cymru.

Thank you, and thank you, Minister, for your statement. Pretty impressive figures, I would have to say, in terms of the contribution that the sector makes, and of course there's no doubt that the food and drink sector makes a significant economic, social, environmental and cultural contribution to well-being in Wales. And the themes, I think, of resilience, innovation and optimism are very welcome, although I would echo concerns that maybe optimism at the minute is difficult, given that the whole landscape of support, not directly for the wider food and drink sector, but particularly for primary producers, is looking challenging. I would reiterate the concerns that were made by the NFU today in a statement that they put out asking Government to reconsider a number of aspects of the proposals, but we can come back to that when you give us a statement on the sustainable farming scheme.

I just wanted to pick out, you say in the statement:

'At the heart of BlasCymru is brokerage between Welsh food businesses and major domestic and international buyers. We believe Government can play an active role in supporting food businesses'.

But, of course, we are facing a period now of diminished resources, so to what extent are those diminished resources going to rein that influence in and constrict, maybe, the role that Government can play in helping to grow the sector? What assurances can you give us that potential cuts will not stifle growth that we've seen in the recent period? You say that your investment in BlasCymru and all of the support programmes you offer is being repaid many times over. Well, of course it is, but the less that's put in upfront, the less that comes back out in terms of return on investment.

I heard you, in evidence to the Economy, Trade and Rural Affairs Committee, when you were being scrutinised on your budget, mention that maybe your approach would have to change and you'd have to look at different ways of approaching things. You mentioned the possibility, for example, of holding virtual trade and export events. Now, I'm not sure that you can taste virtual Welsh cheese, or wash it down with virtual Welsh real ale. It feels like a bit of a cheap imitation. I'm to be convinced that that's the best approach, or even a worthwhile approach—you can persuade me otherwise, I'm sure. So, to what extent are we really going to be utilising some of those means, as opposed to, maybe, some of the other means that have proven themselves in recent years? And, of course, does that mean that we will have to increasingly piggyback Welsh efforts onto UK Government initiatives? And if that is the case, then how do we, within that environment, protect the integrity of the Welsh brand and the Welsh dragon?

You spoke quite a bit, you elaborated quite a bit, about skills. Well, how are we therefore ensuring, in this climate, that there will be a pipeline of skills coming through? A number of training programmes have been name-checked in your statement—are those being protected in future? And can you give us an assurance—? Because, obviously, food impinges on a number of ministerial portfolios here: it's economy as much as it is tourism, as much as it is health and other things. So, tell us about the cross-Government working that might be happening, because we, in this economic environment, need to make every £1 work as hard as possible, and having a cross-Government approach would, I think, help keep the sector on the positive trajectory that it's on.

Thank you. So, you raised a few questions and points there; I will try to answer them all. I think you're right about optimism, it is really difficult. There are so many challenges, and the challenges seem to have come on one after the other, don't they, over the past few years? And, obviously, the challenge of the Welsh Government budget being worth £1.3 billion less than when it was set, back in 2021, is massive, and we've all had to take cuts and, as you know, my portfolio has had a cut, and food and drink is part of my portfolio, and, unfortunately—we're going through draft budget scrutiny at the moment—it's likely that that part of the portfolio will obviously have to take its share of cuts.

One thing I would want to protect is BlasCymru. So, there won't be one this next financial year, so, obviously, that won't have an impact. But there will be an impact on trade development visits et cetera, but I hope it will just be for a year. I hope that there will be more money next year, to be able to pick that up to the level that we've been doing it. It's also good, I think, to refresh. So, for instance, we always have a presence at Gulfood in Dubai—we always have a number of Welsh food and drink companies there. So, it's really important that you listen to those companies to hear what the return on investment is, because that's how you monitor it. So, for me, Blas is absolutely our flagship event. It's not cheap; it's the most expensive event that, as a Government, we fund. And, obviously, we don't get anything back—it's our food and drink. But when you hear £38 million of new orders and new business and potential business—. And it's just great to walk around that brokerage and see those conversations. You've probably heard me say before—it's based on speed dating, and they all get so long, and the buyers say, 'You know you've got that time with that person and you make the most of it', and you just would not be able to have that number of contacts over a period of time. So, I would certainly protect BlasCymru, because, for me, the return on investment is so significant.

I hear what you say about virtuals, but it's actually the food and drink companies that have been telling me that they do think that is worth while. And, you know, cheap imitation is probably right—as you say, you can't taste Welsh food and drink. However, if they're telling us it's worth while, that doesn't cost very much. So, I think we would continue to do those, particularly while we're so constrained with budgets. 

I've never done much with the UK Government and their—. Obviously, they have their union jack on all their 'Best is' whatever. I'm really passionate about making sure that our Welsh food and drink, which is so clearly labelled, as you say, with the dragon et cetera, that we protect that. And I think we can continue to do that. We're seeing more large retailers, more large supermarkets—. You very rarely go into a supermarket in Wales and don't see a few items of Welsh food and drink, and it's certainly important that we continue to do that. 

I attended the Culinary Association of Wales awards last Wednesday night back in the International Convention Centre Wales, and it was really good. There, you have the senior chef of Wales, the junior chef of Wales and other skills as well, but to see the work that they're doing with our young people—. Some of them are very, very young and it's not an easy job working in the kitchens and producing this amazing food. But it was so good to see the enthusiasm and we want to do all we can to encourage. This is one of the biggest sectors, obviously, in Wales. It employs 0.25 million people from farm to fork, as you know, and our restaurants and hospitality sector. So, it is really important that we do continue, and, while at BlasCymru, there was a group of apprentices who came along to see what was on offer, and I managed to grab 10 minutes with them, and just the enthusiasm they had for the sector was great. And again, it's part of that vision for the food and drink industry that we have. 

The Llywydd took the Chair.

Minister, we shouldn't underestimate the role you have played as Minister in the success of BlasCymru. I think it's important to recognise that today. I don't think you'll be surprised, Minister, as the chair of the cross-party group on beer and pubs, that I'll be focusing my short contribution on the role of the brewing industry in Wales. We've had many a conversation about how our unique brewing industry—which is now globally recognised as being of an excellent standard, and rightly so, but—we've had a conversation a number of times about how our Welsh culture and the success of the sporting teams can play a vital part in promoting Cymru's brewing industry to the world. So, I just wonder: whether that's through BlasCymru or other avenues, can you outline how the Welsh Government can support further promoting our brewing industry in these forums? Diolch.  

Thank you for that. One of the things that I really wanted to do with the first BlasCymru back in 2017 was bring the world to Wales, and I think we've done that. The team of officials who work on this did a brilliant job, and they've just built on that success year on year now. As I say, we've now had four. During the COVID pandemic, obviously the number of international buyers coming over dropped and it will take a little while to build that up again, but we did see, as I say, 11 countries—. Buyers from 11 countries came to this year's BlasCymru, and I think that's really to be welcomed. We also had the BBC Food and Farming Awards come and film during BlasCymru, which again I think was another feather in our cap, and it was good to see the coverage that we had in relation to that. 

As you say, the drink sector is so important, and I mentioned about our cluster networks, which I think—. We only do it within the food and drink part of the portfolio but I think the clusters really work very well, where you have academia, you have suppliers, you have Government all working together for that one purpose. Tonight—I'm sure there are a few Members in the Chamber who will be there—the drinks cluster is meeting and we're launching the beers and spirits strategy going forward, and I think that will help us as well with our exports. 

You mentioned global events, and I know we had a discussion in the Chamber about the Rugby World Cup that was held in Japan and how you couldn't buy Wrexham Lager in Wrexham—you could only buy it in Japan, because they couldn't fly it out quickly enough. And it's really important that we look at those events that have that global coverage and be part of that. Certainly, as we grow our food and drink sector, there are more and more companies who want to be part of those global events and we'll be very happy to support them. 

Minister, thank you so much for your statement today. It is fantastic to see the value of the food sector to the Welsh economy, and the way it provides so many work opportunities for people up and down Wales. I'd also echo the comments from Jack Sargeant about the passion that you show as Minister and the support that you give our food producers day in, day out.

Just a few questions, Minister. First of all, have you noticed any emerging trends regarding tastes in food? Secondly, would you agree that with, every day, a new restaurant receiving awards in Wales, the restaurants of Wales, the hospitality sector, have a vital role to play in promoting food production and highlighting the quality of food produced here in Wales? And finally, in this area Coleg Cambria do a magnificent job in providing skills training for young people in food preparation and hygiene. Would you take this opportunity to congratulate and thank all of those skills providers who do such a magnificent job to give opportunities to young people in this sector? Diolch.  

Thank you, Ken, for those comments and questions. I absolutely agree with you, and, again, going back to the culinary awards I was at last Wednesday, which was run by one of the providers of skills here in Wales, Arwyn Watkins said that restaurants now in Wales are probably missing a trick if they're not using Welsh food and drink and displaying it very clearly on the menus that they're using Welsh food and drink, because it is such an important sector, and the provenance of the food and drink is becoming so much more important. Consumers want it, people visiting restaurants want it, so it's really important that they don't miss that trick.

It was great to see—. I mentioned the senior and the junior chefs of Wales, but there were also awards for the way that hygiene was carried out when preparing food. So, the judges—. I think it was a three-day event where the judges had been walking round and watching how the chefs prepared the food, so it wasn't just about the cooking of the food and how it tasted, it was about the way that it was prepared. I think, going back to that skills question, it's really important that our young people, or all people, have those skills as well in preparation for when they go into the sector. 

I had lunch at Coleg Cambria, at the restaurant at Coleg Cambria in my own constituency of Wrexham, just before Christmas, where, as you say, the students serve the food, they wait on the tables, they cook the food, they do everything, and it was so good to see the amount of Welsh food and drink that was on display. The manager was very proud. He took me round the back to make sure I could see just how much Welsh food and drink was on display, which was just brilliant. And as you say, there are lots of providers across Wales who do that, and I'd like to congratulate them all.

I'm suddenly very hungry. 

Thank you, Minister.