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Farming

Farmers and SMEs concerned by supermarket merger

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

THE TENANT F​ARMERS 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.”

Farming

Samuel Kurtz MS warns Chancellor: ‘Don’t sell out British farming in US trade talks’

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SHADOW Rural Affairs Minister Samuel Kurtz MS has urged the UK Chancellor not to sacrifice British farming standards as trade negotiations with the United States continue this week.

The intervention comes as Shadow Chancellor Rachel Reeves visits Washington for her first in-person meeting with US Treasury Secretary Scott Bessent. The meeting is part of early-stage discussions aimed at forging a UK-US trade agreement.

The Herald understands that the UK government is hoping to secure tariff relief on a number of goods still affected by duties imposed during the Trump administration. However, recent signals from US negotiators suggest that any such deal could require the UK to allow imports such as chlorine-washed chicken—currently banned in Britain.

Chlorine-washing is a process used in parts of the US poultry industry to disinfect meat that may have been exposed to poor hygiene conditions. Critics say it masks low welfare and sanitation standards that would be illegal under UK regulations.

Speaking this week, Mr Kurtz said: “British consumers and farmers expect better. Chlorine-washed chicken isn’t just a food safety issue—it’s a red flag for low animal welfare. Allowing such products into our market would fly in the face of everything we ask our own farmers to uphold.

“Our food producers work tirelessly to meet some of the highest standards in the world. Undermining them with a trade deal that rewards countries cutting corners is short-sighted and shameful. It’s not free trade—it’s a free pass for poor practice.”

He added: “If the UK is serious about food security and sustainability, then we must stand by the people who grow our food. That means defending British farming in the negotiating room—not bargaining it away behind closed doors.”

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Farming

Pembrokeshire’s top progressive farmers are encouraged to apply for award

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IF YOU farm in Pembrokeshire and can demonstrate your farm’s use of the latest technological methods to promote progressive, sustainable agriculture then the Pembrokeshire Agricultural Society encourage you to enter the prestigious Baron de Rutzen Award.

Tim Johns, Pembrokeshire Agricultural Society’s President, said, “We are looking for local Pembrokeshire farmers, under the age of 45, who can demonstrate their farm’s use of the latest technological methods to promote progressive, sustainable agriculture. They also need to show consideration for the environment and habitat sensitivity on their farm as well as present an aesthetically pleasing example of farming in the county. The competition welcomes all those in the livestock and arable sectors to enter.”

Last year’s winners of the Award were Andrew and Jane Phillips of Windsor Farm, Lamphey. They farm 1,100 acres, with 3,000 breeding sheep and lambs. A herd of British Blue cross Limousin suckler cows sired by a Limousin bull and all calves are sold as weaned. The arable side of the business includes 80 acres of winter and spring barley which is mostly used for stock consumption. The surplus is sold. They grow 150 acres of maize which is used in a Totally Mixed Ration (TMR) for their sheep. Again, the surplus is sold to dairy farms. Some land is rented out for growing potatoes and leeks. The autumn season sees the general public invited in to buy some of the six acres of Pumpkins they grow for the Halloween market. Besides this, they are also involved with the holiday business by renting out two shepherd’s huts for visitors.

Baron John Fredrick De Rutzen was President of Pembrokeshire Agricultural Society in 1936 and the Baron de Rutzen Trophy was produced in his memory. The third Baron served in the Welsh Guards and tragically died, aged 36, in 1944.

This year’s entrants must be fully practising farmers within the county of Pembrokeshire and were under the age of 45 years on 1 January 2025. Entries can either be by nomination or direct application online on the Pembrokeshire Agricultural Society website. Click here to apply: Pembrokeshire Agricultural Society Baron de Rutzen Award 2025

The closing date for nominations and applications is at noon on Monday, 30 June 2025.

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Business

Changes proposed at children’s care home near Haverfordwest

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A CALL to change a mixed-use therapy centre to a children’s care home classification has been submitted to Pembrokeshire planners.

Skybound Therapies Ltd, through agent Carl Bentley Architectural Services, seeks permission for the change of use of the Skybound Care Farm & Therapy Centre, Campbell Farm, Wiston, near Haverfordwest.

A supporting statement says: “Situated in a discrete rural setting in Pembrokeshire, the Therapy Centre is at the heart of a family-owned Care Farm. It is a working beef and forestry farm, providing a unique and tranquil environment for their services,” adding: “Skybound Care Farm offers a variety of services for both children and young adults. From young adult day opportunities to week-long intensive programmes. The forestry fields provide an ideal setting for practicing walks. Visitors can interact with animals, learn about water safety near their ponds, and immerse themselves in the peaceful beauty of the working farm. Vegetable growing and harvesting is a recent addition to the Care Farm.

“Skybound welcome clients from the local area as well as those travelling from all over the UK and abroad. There is a variety of accommodation types close to the farm and centre, including a holiday village, caravan parks, holiday cottages and log cabins. Many clients like to combine visits to the care farm / therapy centre with exploring local beaches, amenities and attractions.

“The Care Farm HQ and Therapy Centre are in Southwest Wales, but they also cover many locations across the UK, including Cardiff, Newport, Bristol, Birmingham, Leeds, Yorkshire and Norfolk. Skybound are taking on new locations all of the time.”

It says the original Therapy Centre which was constructed in 2012/13 when it “began its journey as a leading national and international therapy centre providing behaviour analysis, positive behaviour support, occupational therapy, speech and language therapy for children and young adults with special needs and behavioural issues”.

In August 2022 planning permission was granted to extend the therapy centre, completed in 2024; the business currently employs 45 staff on a full time and part time basis, a small number of staff are located at the Care Farm & Therapy Centre and at other locations across Wales and the UK.

“Whilst the centre has been running since February 2024 the applicant and business has found that the use of the centre is changing from previously planned and consented usage,” the statement says.

It says that since then discussions have taken place with council planners to clarify the centre’s current planning use class, along with “other opportunities and ideas for the expansion of the business and services to potentially use other existing buildings at the site are currently being investigated, which will no doubt take further time to consider”.

“There is a long-term plan to expand the Care Farm & Therapy Centre activities within the whole of the site and this full planning application is the third stage of the plan. The long-term plan is to provide more ‘settings’ to provide more training, utilising more of the farm setting for example with further interactions with small farm animals and to perhaps house some therapy sessions within other existing farm buildings to provide different types of training settings.”

Late last year, the site was granted permission to extend staff facilities through a temporary building.

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

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