Farming

Farmers and SMEs concerned by supermarket merger

Published

8 years ago

May 16, 2018

Merging?: Mike Coupe (L) with Judith McKenna (Walmart) and Roger Burney (Asda)

THE TENANT FARMERS ASSOCIATION (TFA) is calling for the Government to rethink its refusal to extend the remit of the Groceries Code Adjudicator (GCA) in light of the proposed merger between Asda and Sainsbury’s.

The planned merger, which will probably be referred to the Competition and Mergers Authority, would create the UK’s largest supermarket chain. However, a merged company would still not be as big as Tesco was only a couple of years ago, when that company had over 30% of the UK’s supermarket retail share.

The combined strength of the merged business poses a threat to suppliers, who could find their margins squeezed as the company would be able to depress prices paid to primary producers by manufacturers. That prospect was well flagged up during a BBC News interview with Sainsbury’s CEO Mike Coupe.

Mr Coupe told the BBC that there will be no store closures and no in-store staff redundancies, the inference that can be drawn is that jobs will go both in administration and back office operations, as well as logistics. The most likely way to deliver savings would be to increase the company’s margin or arrangements with producers and suppliers. Mr Coupe told the BBC that the merged company would have the potential to reduce prices through supply chain efficiencies.

Unfair practices within the retail supply chain led the Government to establish the GCA in 2013 to oversee direct supply contracts between retailers and suppliers. However it recently refused to extend the remit to include oversight of relationships further upstream between farmers and processors which could be impacted by the dominance of retailers.

TFA Chief Executive, George Dunn said “The merger between Asda and Sainsbury’s announced this week should cause the Government to rethink its strategy here. When Sainsbury’s boss Mike Coupe pledged to cut prices on everyday products by 10%, alarm bells rang out across the industry. It is suppliers who will be expected to shoulder the cost of these savings.

“There is a growing recognition that the food supply chain in the UK is dysfunctional and all too often it is the farming community which bears the brunt of the problems that this produces. Poor returns, last-minute changes in orders and specifications, unfair competition from abroad and poor labelling are all contributing to the pressures at farm level,” said Mr Dunn.

“Given that the vast majority of farm produce passes through at least one processor, if not more, before it hits supermarket shelves, the Adjudicator is therefore unable to consider the impact of retailer activity on many farmers,” said Mr Dunn.

Speaking in the House of Commons on Monday (Apr 30), Business Minister, Andrew Griffiths MP, referred to the work of the Groceries Code Adjudicator, but failed to address why the Government had decided to do nothing to protect primary suppliers. This was despite being challenged by Labour’s Shadow Agriculture Minister, David Drew MP on how the Government planned to tackle further potential supply chain abuse between farmers, processors and retailers.

“The TFA agrees that the GCA has had a positive impact on the groceries market by ensuring that there is a greater focus on the principles of fair trading. Retailers are now more aware of the need to ensure that they are not using their dominant position within the supply chain to engage in inappropriate practices. However the extent of the influence of the GCA is limited by its current legislative powers both in terms of the scope of its remit and its ways of working. The Government needs to act now to ensure that appropriate mechanisms are in place to guard against future abuse in the light of further concentration in the retail sector,” said Mr Dunn.

“Well-meaning initiatives aimed at improving supply chain relationships on a voluntary basis have failed to have the necessary traction across the board. We must deepen and broaden the GCA’s powers to allow it to look at the whole of the supply chain and not just direct supply contracts to ensure fairness in supply chains.”

Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “A merger of this size will concentrate a lot of power in the hands of one giant company, and it’s important that power isn’t misused to coerce small suppliers into accepting unfair contracts and poor payment terms.

“Those at the top of Sainsbury’s and Asda should explain how they plan to merge these two supply chains fairly, and give reassurance that cost savings won’t be achieved simply by milking their small suppliers for all they’re worth.

“When investigating this proposed merger, the Competition and Markets Authority should be looking for cast-iron commitments that a positive standard will be set for working with smaller suppliers.”

FUW President Glyn Roberts said: “The proposed merger will raise many concerns for farmers given the huge power a new mega company could exert over the supply chain.

“If the government were to allow such a merger, we would need to see a step change in regulation of the supply chain and the powers of the Groceries Code Adjudicator, otherwise there is a risk of severe abuses taking place which further undermine farmers and suppliers.”

NFU Cymru President John Davies said: “NFU Cymru and the NFU will be examining the details of this proposed merger between Sainsbury’s and Asda carefully and the further concentration of retail power it creates within the food supply chain. We will also seek clarity on what the structure of any merger will be.

“We will be requesting a meeting with Sainsbury’s and Asda to ensure that the commitment of the new business to British sourcing will not be affected. First and foremost the NFU Cymru and the NFU will be seeking to understand what potential impact a merger would have on our members – both those farmers who are directly part of these supply chains and those who could be affected by wider connotations.

“With just over 31% of the market potentially being held by one company the Competition and Markets Authority (CMA) is likely to consider the impact on shoppers – but that must also take account of changes to supply arrangements that could give rise to a reduction in choice and availability over the long term. The impact of the whole supply chain, all the way down to farm level, needs to be carefully assessed.

“NFU Cymru and NFU support any investigation by the CMA and we would aim to feed into this if approached.”

Welsh Liberal Democrat Spokesperson for Agriculture Cllr William Powell said: “Welsh farmers will be justifiably concerned this merger will produce a supermarket that is simply too powerful, leaving suppliers at its mercy.

“Farmers already work with tight profit margins and face the multiple challenges of Brexit, including diminishing farm support and obstacles to accessing the vital EU Single Market. This merger must not be allowed to threaten them further.”

Business

Plans to rebuild arson hit building at farm with one of largest sheep flocks in Wales

Published

2 days ago

March 20, 2026

Bruce Sinclair - Local Democracy Reporter

A CALL to rebuild a fire-damaged Pembrokeshire farm building, as a family home to help manage one of the largest sheep flocks in Wales, has been submitted to the national park.

In the application to Pembrokeshire Coast National Park, D B Davies and Sons through agent Harries Planning Design Management, with a supporting statement by Reading Agricultural Consultants Ltd, seek permission to renovate an existing fire-damaged dwelling, together with the conversion and extension of outbuildings to form an agricultural worker’s dwelling at Mynydd Du, Rosebush.

The supporting statement through Reading Agricultural Consultants Ltd says Mynydd Du is part of a wider holding which includes Eisteddfa Fawr and land around the village of Brynberian, the farms approximately six km apart, with land under control of the applicant amounting to some 1,500 acres, with a further 3,000 acres of Preseli mountain common land also used; the land accommodating a 5,000-ewe flock with 10 suckler cows and followers.

It says DB Davies & Sons Unlimited, has five partners: the two Davies brothers, Berian and Ken; their wives; and Berian’s son, Dyfed.

Berian and Ken are in their late 70s, with most of the heavy work on the farm is undertaken by Dyfed.

Dyfed and his wife Megan are first language Welsh speakers, living some 10 km away in Nevern, while Berian and Ken, and their wives, live at Eisteddfa Fawr, Brynberian.

The dwelling at Mynydd Du, where most sheep are now wintered, is structurally sound and repairable but has been unoccupied since 1990, and was subject to arson circa 2013, the statement says.

It says Dyfed works full-time on the farm, alone with increasing frequency as the older business members are above retirement age, working “long hours out of necessity to undertake all the work associated with one of the largest flocks of sheep in Wales”.

“His working hours are extended further due to the fact that he lives remote (6kms) from the main block of land at Tyllosg, where Mynydd Du is situated in the centre of the farm. Travelling back and forth several times each day during lambing and other times during poor weather, to check on flock welfare is an arduous task and can be dangerous, particularly if driving when tired during inclement conditions.”

The statement adds: “The application seeks permission to repair the fire damaged dwelling at Mynydd Du and bring it back to serve a useful purpose to enable Dyfed to closely monitor the ewes, not only at lambing, but throughout the year when the flock is grazing on the adjacent common land.

“It will also enable Dyfed to be with his partner and young child on a more regular basis than simply at the end of a long day when he is away from their current home, tending the sheep at Mynydd Du.”

The application will be considered by park planners at a later date.

Farming

Wales sees progress in bovine TB fight as debate over badger role continues

Published

2 days ago

March 19, 2026

Tom Sinclair

New figures show decline in herd incidents, but disagreement remains over wildlife controls

WALES is making steady progress in tackling bovine tuberculosis (bTB), according to the Welsh Government, but a long-running debate over the role of badgers in spreading the disease continues to divide opinion.

In a written statement issued this week, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, HUW IRRANCA-DAVIES, outlined what he described as “clear progress” in Wales’s eradication programme.

Latest figures show a sustained long-term decrease in new TB herd incidents, which ministers say reflects the success of a science-led, cattle-focused strategy. The approach has prioritised enhanced testing, stricter movement controls, and improved biosecurity on farms.

The Welsh Government says more sensitive testing methods are helping to identify infection earlier, while efforts are also being made to reduce the number of cattle slaughtered unnecessarily.

However, the issue of whether wildlife—particularly badgers—plays a significant role in spreading the disease remains contentious.

Farmers and government under pressure

Bovine TB continues to have a major economic and emotional impact on Welsh farming communities, particularly in rural areas of Pembrokeshire, Carmarthenshire and Ceredigion.

Farmers’ unions have long argued that wildlife reservoirs, including badgers, contribute to the persistence of the disease, and have called for stronger intervention measures.

In England, controversial badger culling programmes have been rolled out over the past decade, with UK Government figures suggesting significant reductions in TB rates in some areas.

But those claims remain disputed, with critics arguing that the evidence is far from clear-cut.

Badger Trust backs Welsh approach

Responding to the Welsh Government’s latest statement, the Badger Trust welcomed the direction of policy in Wales and urged ministers to maintain a focus on cattle-based controls.

The charity said the latest statistics demonstrated that Wales’s approach was delivering “real results” and represented a clear improvement on policy seen elsewhere.

Chief Executive NIGEL PALMER said: “The latest TB statistics show sustained long-term decreases in new TB herd incidents, demonstrating that Wales’s science-led, cattle-focused approach is delivering real results.”

The Trust also questioned the effectiveness of culling, arguing that reductions in England cannot be attributed solely to killing badgers.

It said: “The analysis behind this figure cannot separate the effects of culling from other measures such as enhanced cattle testing, stricter movement controls, and improved biosecurity.”

The organisation maintains that bovine TB is primarily a cattle disease, with most transmission occurring between cattle rather than from wildlife.

Scientific disagreement remains

The role of badgers in spreading bTB has been the subject of decades of scientific study, with no universal consensus.

Some studies have suggested that badgers can act as a reservoir for the disease, potentially infecting cattle through environmental contamination.

Others, including research cited by animal welfare groups, argue that the impact of badgers on overall transmission rates is limited compared to cattle-to-cattle spread.

The Welsh Government’s own Technical Advisory Group has previously stated that a combination of measures may be needed, including consideration of wildlife alongside cattle controls.

However, Wales has so far resisted introducing widespread badger culling, instead focusing on vaccination trials and tighter cattle measures.

Calls for clarity and consistency

The Badger Trust also raised concerns about international standards, arguing that requirements for Officially TB Free status focus primarily on bovine species rather than wildlife.

It warned that policies targeting badgers risk diverting attention and resources away from more effective cattle-based interventions.

At the same time, farming representatives continue to press for stronger action, arguing that without addressing all potential sources of infection, eradication efforts could stall.

A long road ahead

While the latest figures suggest progress, the Welsh Government has acknowledged that completely eradicating bovine TB remains a long-term challenge.

For now, Wales appears set to continue its cautious, evidence-led approach—balancing animal health, farming livelihoods, and wildlife protection.

But with pressure mounting from both sides of the debate, the question of how far to go in tackling the disease is unlikely to be settled any time soon.

Farming

£3 million secured to continue Welsh sheep genetics programme

Published

2 days ago

March 19, 2026

Tom Sinclair

THE WELSH GOVERNMENT has confirmed £3 million in funding over the next three financial years to continue the Welsh Sheep Genetics Programme (WSGP), helping Welsh sheep farmers improve efficiency, productivity and environmental performance.

From April 2026, Hybu Cig Cymru – Meat Promotion Wales (HCC) will lead Phase 2 of the programme, marking a significant next step in supporting farmers to make smarter, evidence-based breeding decisions.

The new phase will provide transition support for existing participants while also opening the programme to new flocks. Farmers will receive practical, technical and financial support to make use of Genomic Estimated Breeding Values, advanced genetic tools designed to help them make better-informed decisions at farm level. The data collected will also strengthen industry benchmarking and support longer-term business planning.

Phase 2 will also include the development of robust key performance indicators, tailored farm-level action plans, and an ambitious portfolio of research projects aimed at driving innovation across the sector.

The programme’s objectives are closely aligned with the Sustainable Farming Scheme, which launched on January 1, 2026, as well as HCC’s Vision 2030, reflecting a shared commitment to a productive, sustainable and competitive Welsh red meat industry.

Phase 1 of the WSGP, delivered by Farming Connect, comes to an end on March 31, 2026. Since launching in 2023, the programme has achieved significant progress, including introducing genomics into the sheep sector for the first time anywhere in the world.

It has also generated 70,000 genotypes across Tier 1 and Tier 2 flocks on the AHDB-Signet database since 2023, the highest number recorded there, while developing two major research strands focused on breeding for worm resistance and reduced methane emissions.

The programme has worked in close partnership with leading specialists, including Innovis and AHDB-Signet, and has delivered measurable genetic gains and improvements in key performance traits across participating flocks.

The investment underlines the Welsh Government’s commitment to reducing greenhouse gas emissions while supporting the production of high-quality, sustainable PGI Welsh Lamb.

Deputy First Minister for Climate Change and Rural Affairs, Huw Irranca-Davies, said: “This funding demonstrates our commitment to supporting farmers to build profitable, resilient businesses while delivering on our climate ambitions. The Welsh Sheep Genetics Programme shows what is possible when cutting-edge science meets the proud tradition of Welsh livestock farming. By helping farmers breed healthier, more productive flocks with a lower environmental footprint, we are strengthening food security and safeguarding our rural economy for the long term.”

José Peralta, Chief Executive of Hybu Cig Cymru, said: “The progress achieved to date reflects the commitment of farmers across Wales, the work of the Farming Connect team, and the continued financial support of the Welsh Government. Together, these provide a strong platform for the next phase.

“This next step directly supports a core priority in our new strategic plan: to develop and lead the implementation of initiatives that improve economic and environmental sustainability. We look forward to working closely with farmers to ensure they have the tools, insights and support needed to thrive in the years ahead.”