The food processing industry in Wales is incredibly depressed about the future, with a fall in livestock numbers placing a question mark over its prospects, witnesses warned.

Nick Allen, chief executive of the British Meat Processors’ Association, told the Senedd’s rural affairs committee: “My members are incredibly concerned about the direction of travel.

“And it doesn’t just apply to Wales, [it’s] right across the whole country, but I think it’s particularly significant here: the decline in livestock numbers, the projections and, dare I say, the attitude and the desire… in the Welsh Government to actually drive a further reduction.”

Mr Allen said: “Big investors and employers in Wales are incredibly concerned about the future: more than concerned, I’d say incredibly depressed about what the future holds.”

He warned: “Unfortunately, it seems endemic within civil servants that they don’t really want to help industry and work with them. They seem to almost [act] as a police force to stop us doing things rather than thinking ‘this is what’s good for the country’.”

Mr Allen, who has been involved in discussions since the controversial sustainable farming scheme was paused by ministers, suggested the dial has barely moved in the months since. He described ministers’ approach to bluetongue disease as “another nail in the coffin”.

José Peralta, chief executive of Hybu Cig Cymru, said livestock numbers have dropped significantly and will likely continue to fall.

He warned: “That poses a big question mark about how do we carry on in the future with an industry that remains competitive.”

Andrew RT Davies, who chairs the rural affairs committee which is holding an inquiry on food processing, questioned whether Wales is “chasing a hare we will never catch” amid falls in livestock numbers and a dramatic decline in abattoirs.

The Tory asked: “Or are we just managing the decline of the livestock sector here in Wales?”

John Thorley, chairman of the Association of Independent Meat Suppliers, warned changes introduced by the Welsh Government have reduced farmers’ confidence.

“That is, I believe, underlying everything,” he said.

Mr Allen told the committee: “I don’t know whether it’s accidental or deliberate but it feels as though we’re just managing decline. I find it really frustrating.”

Warning many schemes aimed at helping farmers are "totally contrary to what you ought to be doing”, he stressed that Wales has one of the best climates for livestock in the world.

He said: “It seems as though we’re just managing decline and wanting to get rid of it.

“And for what? To my mind, to be brutal about it, it’s a form of nimbyism [not in my back yard]: you’re going to head towards a net zero in Wales, wonderful – but you’re going to be importing a load of meat from the rest of the world.”

Rhun ap Iorwerth asked whether the abattoir network should be a critical part of national infrastructure.

Mr Allen agreed with the Plaid Cymru leader’s suggestion, saying: “What’s the point in farmers producing livestock if you haven’t got the processing sector?”