Business

Food processing industry ‘in managed decline’

Published

1 week ago

July 3, 2025

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/Meat Promotion Wales, said livestock numbers have dropped significantly and will likely continue to fall.

Jose Peralta, chief executive of Hybu Cig Cymru/Meat Promotion Wales

Giving evidence on June 2, he warned: “That poses a big question mark about how do we carry on in the future with an industry that remains competitive.”

Kepak, a family owned business which runs a beef and lamb processing site in Merthyr Tydfil, employing 1,000 people, raised urgent and grave concerns about livestock numbers.

In its written evidence, the company said: “The efficiency and viability of our operations and the jobs that we provide rely on a critical mass of livestock.”

Asked about the Welsh Government’s 2021 vision for the industry, Mr Peralta said: “It’s a set of very nice and good aims but I struggle to see sometimes what’s underneath that’s going to drive all the different elements to get to that final aim.”

Raising the example of Ireland, he added: “They have conviction, they have ambition and they put money behind it. And those are the three things… we would have to change.”

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.

Welsh Conservative leader Andrew RT Davies

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, who represents Ynys Môn which has lost two large slaughterhouses, 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?”

Mr Peralta, who runs an abattoir on Anglesey and previously closed another, said: “That was for a single reason, not enough livestock… that is the fundamental issue.

“When you look at it, Wales slaughtered two-and-a-half million sheep last year – compare that to three million just in Anglesey eight-nine-10 years ago.”

Mr Thorley said: “We need more abattoirs. But we also need controls which are appropriate. The controls… at the moment are over the top, far too expensive and don’t actually deliver.”

John Thorley, chairman of the Association of Independent Meat Suppliers

He added: “I look at it sometimes and I get—disgusted is the wrong word but I find myself feeling ‘what the hell is going on?’. We wanted there to be a government in Wales – it could do such a lot but I don’t see it, I don’t see the evidence.”

Business

Cyberattack and warehouse blaze leave Owens Group with £3.2m loss

Published

16 hours ago

July 10, 2025

Tom Sinclair

Welsh haulier hit by ransomware attack and fire at major depot

A CYBERATTACK and a major warehouse fire caused “massive disruption” to operations at Owens Group, the Welsh family-run logistics firm has confirmed, contributing to a pre-tax loss of £3.2 million.

The company, which is headquartered in Llanelli and operates across the UK, revealed in its annual accounts that the attack took place during the financial year ending June 30, 2024. The malicious cyber incident, which later appeared on the dark web, blocked access to internal systems and demanded a ransom payment.

Owens said the cyberattack knocked out all of its IT systems for several weeks, forcing the company to rebuild its network and reload data before operations could resume.

“This event massively disrupted operations across all areas of the group and caused significant issues for many months to come,” the directors said in their report. “The group also suffered a major fire in one of its warehouses which exacerbated the operational pressures being managed after the malicious cyber assault.”

Turnover for the year fell by £5.2 million to £105.2 million. The company recorded a loss before interest costs of £1.24 million, with higher interest rates adding a further £1.1 million to its outgoings.

Despite the setbacks, the directors paid tribute to the “resilience, hard work and commitment” of Owens staff, expressing their “sincere gratitude” to employees who ensured customers experienced as little disruption as possible.

“While the staff worked tirelessly, operations were inefficient, additional costs were incurred and seasonal workload reduced due to these operational difficulties,” the report added.

The company said its diversified activities helped it weather the crisis, and its strong balance sheet provided stability. It also reported an improved financial position in the period after the year end, driven by new contract wins, a return to full operational capacity, and tighter cost controls.

Owens Group confirmed that it has since invested in improved cyber protection and IT infrastructure, noting that the business “relies heavily on its IT systems to function efficiently.”

Business

Offshore wind supply chain boost for Pembrokeshire businesses

Published

16 hours ago

July 10, 2025

Tom Sinclair

New funding to support local firms as floating wind sector gathers pace

SMALL and medium-sized businesses in Pembrokeshire are set to benefit from a major new initiative designed to help them enter the fast-growing floating offshore wind sector in the Celtic Sea.

The Crown Estate has announced it will provide £100,000 to support a dedicated regional supply chain programme in South-West Wales – delivered through the successful Fit For Offshore Renewables (F4OR) scheme. The initiative will also be backed by matched funding from the Swansea Bay City Deal, co-funded by the Welsh and UK governments.

The programme was unveiled at an event held in the Senedd on Tuesday (July 9), where Crown Estate Chief Executive Dan Labbad and Welsh ministers outlined how collaboration across public bodies and industry is creating new economic opportunities for Wales.

Support for Pembrokeshire firms

The new 18-month programme will focus on preparing businesses in the Swansea Bay City Region – which includes Pembrokeshire – to enter the floating wind supply chain. This comes as the Celtic Sea is set to host several large-scale floating wind projects following recent lease awards by The Crown Estate.

Pembrokeshire already plays a key role in offshore renewables, with the Port of Milford Haven, Pembrokeshire College and local marine technology companies like Marine Power Systems Ltd receiving earlier Crown Estate support through a separate £50m Supply Chain Accelerator fund.

Firms across the county will now be able to express interest in joining the new F4OR programme from the end of July via the ORE Catapult website. Participating businesses will be assessed based on their readiness to enter the floating wind market and alignment with ambitions outlined in the Celtic Sea Blueprint – a roadmap forecasting up to 5,300 new jobs and £1.4 billion in UK economic benefits.

Clean energy and long-term jobs

Rebecca Williams, Director for Devolved Nations at The Crown Estate, said: “SMEs are the lifeblood of the Welsh economy, and this new support will help Pembrokeshire firms gear up for the once-in-a-generation opportunity presented by floating offshore wind in the Celtic Sea.

“By building a resilient local supply chain, we can create well-paid jobs and support the transition to clean energy.”

Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy and Planning, added: “We want to see local companies at the heart of the offshore wind sector, and this programme gives Welsh businesses the tools they need to bid for work in this growing industry.”

The announcement follows news that two major wind farms – proposed by Equinor and the Gwynt Glas joint venture – are set to move forward in the Celtic Sea as part of Offshore Wind Leasing Round 5.

As development progresses, Pembrokeshire is expected to become a key operations and maintenance base for floating wind, with strong potential for growth in engineering, fabrication and marine services.

Businesses interested in taking part in the programme should visit www.ore.catapult.org.uk from the end of July.

Business

Pirate bar plans for Saundersfoot harbour boat refused

Published

19 hours ago

July 10, 2025

Bruce Sinclair - Local Democracy Reporter

PLANS for a pirate-themed bar at a Pembrokeshire seaside village family venue built in part to reflect its coal heritage have been refused by the national park.

In an application recommended for refusal at the July 9 meeting of Pembrokeshire Coast National Park’s development management committee, Jonathan Thomas of ‘Schooner’ sought permission for a change of use of the Coastal Schooner interpretation centre, Saundersfoot Harbour to a rum and pirate-themed bar.

The schooner – a prominent feature on the village’s National Events Deck – was built to showcase Saundersfoot’s maritime heritage and is part of the £10m Wales Coastal Centre project.

The building is a replica of a traditional coastal schooner vessel which operated from the harbour during the coal mining era to transport coal from Saundersfoot.

The interpretation centre closed in October 2024.

Saundersfoot Community Council and Saundersfoot South county councillor Chris Williams have voiced their objections to the plans; the community council saying the proposal as a rum bar “raises concerns in this location and is considered to be at odds with the current family venue and heritage elements”.

A supporting statement accompanying the application said: “The maritime theme will be maintained as the bar will include a small-scale rum distillery and will focus on the maritime history associated with rum and tell the tales of local pirates.

“The Schooner operated as an interpretation centre and high ropes offer for a year from October 2023 to October 2024. However, it has proved not to be a viable option to run the Schooner as an interpretation centre alone and an additional use is sought to maintain the interpretation element of the Schooner.

“The High Ropes offer proved to be an unviable option to retain going forward.

“The proposal seeks to change the use to a mixed-use interpretation centre and bar, following the model of the Rum Story in Whitehaven Harbour on a smaller scale.”

It adds: “The proposal will allow for the Schooner to be maintained and be freely open to the public thus protecting and enhancing the community facilities to meet the needs of local people and visitors alike.”

An officer report recommending refusal said the scheme is considered to fall outside the seaside village’s defined retail area and the impact on the amenity of the area and especially nearby residential dwellings.

Speaking at the July meeting, chair of Saundersfoot Community Council, and county councillor, Cllr Alec Cormack said it backed the two officer recommendations, adding the original scheme had been supported because of its heritage use but had not proved to be commercially viable.

He said the community council had raised safety concerns over the sale of alcohol at the schooner, with its high masts, finishing: “I urge the applicant and the harbour as landowner to engage with the village for a more family-friendly scheme that all can support.”

Also speaking at the meeting, fellow Saundersfoot councillor Chris Williams called for a “clear rejection” of the scheme, adding the promise and an educational and cultural asset had not been delivered.

“This is a complete departure from the original use from publicly funded facilities,” said Cllr Williams, adding: “The community was promised a learning centre not another drinking venue; it’s rebranding an educational feature as a bar.”