The Food and Drink Federation Cymru (FDF Cymru) has outlined priorities for the Welsh Government to work with industry to continue to support and grow Wales’s £1.7bn food and drink manufacturing sector.
Across the UK’s food and drink manufacturing industry, there’s a £14bn growth opportunity which could be unlocked through investment in technology and innovation1. This opportunity is particularly pertinent in Wales, where, since 2021, food and drink manufacturing has experienced the fastest economic growth of any UK region.
With many new small, innovative food and drink businesses emerging in the country, there’s the opportunity for the sector to drive economic growth and provide high-skilled jobs in communities across Wales. However, the industry needs a stable regulatory environment and targeted government support to invest in technology, innovation, and infrastructure that will drive future growth. This is particularly the case as businesses face mounting cost pressures from rising ingredient and energy prices and increased regulatory pressures including changes to National Insurance Contributions (NICs) and a new £1.4bn packaging tax.
FDF Cymru is calling on the Welsh Government to partner with the food and drink manufacturing industry to:
- Create a supportive regulatory environment by working with other UK nations to align food and drink regulations in areas such as health, packaging, and food safety
- Develop a skilled workforce by working with Westminster on the new Growth and Skills Levy, protecting the £3m Food Skills Cymru funding, and delivering a simplified skills system
- Support the circular economy by implementing Extended Producer Responsibility and Deposit Return Schemes that align with the rest of the UK, and by continuing to invest in waste infrastructure to ensure Wales remains a top recycling nation.
- Protect export support provided by Business Wales to help diversify and strengthen ‘Brand Wales’ in overseas markets
David Harries, Chief Executive, FDF Cymru, said:
“Contributing £1.7bn to the economy and representing a fifth of Wales’s total manufacturing workforce, the food and drink industry is a vital driver of our nation’s economy.
“We want to build a healthier, more sustainable future for Welsh food and drink. With targeted government support, we can invest in recycling infrastructure to deliver a truly circular economy, back innovation to help businesses produce healthier foods, and equip the next generation with the skills to thrive in our sector.
“Under the right conditions, Welsh food and drink can unlock its full potential for sustainable growth, pumping opportunity and prosperity into our communities.”
