Written evidence submitted by Hybu Cig Cymru (BAT0019)

Dear Edward

HCC Response to evidence by Peter Williams (Welsh Affairs Committee – Inquiry into Brexit: Agriculture, Trade and the repatriation of powers)

Mr. Williams has been in contact with HCC on several occasions over the past year. He has a deep interest in the issue of potential lamb exports to Saudi Arabia due to a period working in the country some years ago, and we have endeavoured to respond to his queries on this matter. We remain uncertain; however, exactly what practical steps Mr. Williams would advocate exploring the potential of this market beyond those which HCC is already pursuing.

Members may be aware that restrictions on UK red meat to Saudi Arabia have recently been lifted, and exports may begin in 2018 subject to certification being processed.[1] Over recent years HCC has worked through the UK Export Certification Partnership (UKECP) to gain market access, has undertaken market research including work to identify appropriate distribution channels and understand import regulations, and visited the country along with meat processors in 2017 as part of a Welsh Government trade mission.

In almost all export destinations, PGI Welsh Lamb is priced somewhat higher than its major competitors, but can achieve a share of the market based on its premium brand. Based on our research and in-market activity to date we see no reason why the Saudi market would be substantially different in this respect. We are not proposing live exports, and it is self-evident that meat would need to be chilled; the cost of refrigerated transport is one of the reasons why Welsh Lamb is potentially best-suited to premium segments of the market. However we will continue to explore all potential markets for cuts and carcases in this country of high lamb consumption.

In relation to Dubai, we have worked with the British Embassy and others to undertake promotions around St. David’s Day many times. We are confident that this does not cause offence to religious sensibilities in the UAE, and have received no feedback to this effect.

HCC plays a role in knowledge exchange across the supply chain. We offer free training courses for farmers and others at abattoirs which address the issue of extending shelf life, and fail to see how stating this fact can be interpreted as ‘tongue in cheek’ as Mr. Williams suggests. Our courses and wider work in this area pre-date the appointment of a Supply Chain Development Executive in January 2018, as evidenced by previous research projects and the publication of guidance notes for farmers.[2] HCC concurs with Mr. Williams that improving shelf life is an important aspect in the future development of Welsh red meat exports.

Addressing Mr. Williams’s other remarks; HCC regularly reviews its promotional activities and events in order to achieve the best value for its investment on behalf of levy-payers.

We agree with him that Brexit poses a range of urgent challenges to the industry. This consideration is central to HCC’s current work in both marketing and industry development. Recently HCC conducted a series of events across Wales to help agricultural businesses prepare for the post-Brexit world.

Please contact my office if we can be of further assistance on this matter.

Yours sincerely

Gwyn Howells

Chief Executive

13 April 2018