Farming
Farmers and SMEs concerned by supermarket merger
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.”
Farming
Welsh Conservatives warn climate plans could mean fewer livestock on Welsh farms
THE WELSH CONSERVATIVES have challenged the Welsh Government over climate change policies they say could lead to reductions in livestock numbers across Wales, raising concerns about the future of Welsh farming.
The row follows the Welsh Government’s decision, alongside Plaid Cymru and the Welsh Liberal Democrats, to support the UK Climate Change Committee’s Fourth Carbon Budget, which sets out the pathway towards Net Zero greenhouse gas emissions by 2050.
The Carbon Budget, produced by the independent Climate Change Committee (CCC), states that meeting Net Zero targets will require a reduction in agricultural emissions, including changes to land use and, in some scenarios, a reduction in livestock numbers.
During questioning in the Senedd, the Welsh Conservatives pressed the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs on whether the Welsh Government supports reducing livestock numbers as part of its climate strategy.
Speaking after the exchange, Welsh Conservative Shadow Cabinet Secretary for Rural Affairs, Samuel Kurtz MS, said the Welsh Government could not distance itself from the implications of the policy it had backed.
Mr Kurtz said: “By voting in favour of these climate change regulations, Labour, Plaid Cymru and the Liberal Democrats have signed up to the UK Climate Change Committee’s call to cut livestock numbers in Wales, and they cannot dodge that reality.
“The Deputy First Minister’s smoke-and-mirrors answers only confirm what farmers already fear: that Labour, along with their budget bedfellows in Plaid and the Lib Dems, are prepared to sacrifice Welsh agriculture in pursuit of climate targets.”
He added that the issue came at a time of growing pressure on the farming sector, pointing to uncertainty over the proposed Sustainable Farming Scheme, the ongoing failure to eradicate bovine TB, nitrogen pollution regulations under the Nitrate Vulnerable Zones (NVZs), and proposed changes to inheritance tax rules affecting family farms.
The Welsh Government has repeatedly said it does not have a target to forcibly reduce livestock numbers and has argued that future emissions reductions will come through a combination of improved farming practices, environmental land management, and changes in land use agreed with farmers.
Ministers have also said the Sustainable Farming Scheme, which is due to replace the Basic Payment Scheme, is intended to reward farmers for food production alongside environmental outcomes, rather than remove land from agriculture.
The UK Climate Change Committee, which advises governments across the UK, has stressed that its pathways are based on modelling rather than fixed quotas, and that devolved governments have flexibility in how targets are met.
However, farming unions and rural groups in Wales have warned that policies focused on emissions reduction risk undermining the viability of livestock farming, particularly in upland and marginal areas where alternatives to grazing are limited.
The debate highlights the growing tension between climate targets and food production in Wales, with livestock farming remaining a central part of the rural economy and Welsh cultural identity.
As discussions continue over the final shape of the Sustainable Farming Scheme and Wales’ long-term climate plans, pressure is mounting on the Welsh Government to reassure farmers that climate policy will not come at the expense of the sector’s survival.
Farming
FUW Insurance Services appoints Paul Jameson as non-executive director
Experienced insurance and risk specialist joins board as long-serving director retires
FUW INSURANCE SERVICS LTD, Wales’ leading specialist agricultural insurance broker, has announced the appointment of Dr Paul Jameson as a non-executive director.
Dr Jameson brings extensive experience in insurance and risk management, having worked as an actuary and senior executive within subsidiaries of major global insurers including Allianz, Munich Re, Legal & General and Wakam. He has held chief risk officer roles since 2020.
During his career, Dr Jameson has led multidisciplinary teams spanning actuarial services, risk management, compliance, audit, legal and marketing approvals, giving him broad experience in both strategic oversight and operational governance.
Speaking following his appointment, Dr Jameson, who lives in Colwyn Bay, North Wales, said he was looking forward to supporting the farming sector in Wales.
He said: “I am delighted to join FUW Insurance Services and would like to thank Ann, Guto and the rest of the team for their warm welcome.
“I have been impressed by the passion and commitment of the board to the farming community, and by its ambition to grow and diversify the insurance business. I am keen to support the farming profession and help ensure the continued success of the sector in Wales, particularly during periods of economic and geopolitical uncertainty.
“I hope my experience in the insurance sector will help the business build on its successes and continue to grow, especially as it explores new commercial opportunities and innovative avenues for expansion.”
Ann Beynon OBE, chair of the FUW Insurance Services board, said Dr Jameson’s expertise would be a significant asset to the organisation.
She said: “We are delighted to welcome Dr Paul Jameson to the board. His depth of experience in insurance and his understanding of risk management will be invaluable as we continue to develop and diversify our services.
“Paul’s insight and strategic perspective will help us navigate a changing insurance market, identify new opportunities for innovation and growth, and strengthen the services we provide to our customers.”
Dr Jameson’s appointment follows the retirement of Ken Isherwood, who has stepped down from the board after more than a decade of service.
Paying tribute, Ann Beynon said: “Ken’s integrity, wisdom and deep knowledge of the insurance industry have underpinned much of our success.
“It has been a privilege to work alongside him, and we wish him every happiness in his well-earned retirement.”
Community
Badger Trust launches manifesto ahead of 2026 Senedd elections
THE BADGER TRUST has published a new Cymru Badger Manifesto calling on candidates standing in the 2026 Senedd elections to commit to a science-led approach to bovine tuberculosis (bTB) and to maintain Wales’ current policy of not culling badgers.
The manifesto, released on Wednesday (Dec 10) as part of the charity’s Badgers Belong Here / Mae Moch Daear yn Perthyn Yma campaign, sets out the organisation’s position on badger protection, wildlife crime and bTB control, and urges politicians to reject calls for the reintroduction of culling in Wales.
Badger Trust argues that political decisions taken during the next Senedd term will be critical to the future of badgers, which it describes as culturally and ecologically significant to Wales. The charity says badgers have been present in Wales for more than 250,000 years and remain part of Welsh folklore, place names and rural identity.
Five key commitments
The manifesto outlines five commitments the charity is asking Senedd candidates to support, including defending what it describes as science-led policy on bTB, challenging misinformation in public debate, strengthening enforcement against wildlife crime, recognising badgers as part of Welsh heritage, and supporting local volunteer badger groups.
According to Badger Trust, 140 incidents of badger-related wildlife crime have been recorded in Wales since 2020, which it says highlights the need for improved reporting and enforcement.
The charity also points to the work of six active badger groups across Wales, which it says assist with rescuing injured animals, monitoring setts, recording road casualties and supporting local authorities.
bTB policy in Wales and England
Wales has not carried out widespread badger culling as part of its bTB control strategy, instead focusing on cattle testing, biosecurity measures and herd management.
Badger Trust claims that new herd incidents of bTB in Wales fell by more than 40% between 2010 and 2024, which it attributes to cattle-based controls rather than wildlife intervention.
The charity contrasts this with England, where it says almost 250,000 badgers have been culled over the past decade as part of bTB control programmes. It argues that bTB rates in England remain higher than in Wales and that the evidence does not show culling alone to be responsible for reductions in disease.
Disputed claims over culling
The manifesto challenges the frequently cited claim that badger culling in England led to a 56% reduction in bTB in cattle. Badger Trust says this figure has been misinterpreted and that studies cited in support of culling also involved additional measures such as enhanced cattle testing and biosecurity.
The charity points to statements from researchers and official correspondence which, it says, indicate that reductions in bTB cannot be attributed solely to culling.
Supporters of culling, including some farming groups, continue to argue that wildlife control should remain an option as part of a wider disease management strategy, particularly in areas with persistent infection. The Welsh Government has previously said it keeps its bTB policy under review in line with emerging evidence.
Call to candidates
Nigel Palmer, CEO of Badger Trust, said Wales demonstrated that bTB could be tackled without killing wildlife.
He said: “Wales is a world-leading example of how to address bovine TB through evidence-based policy. The progress made here shows that culling is not necessary, and we urge Senedd candidates to stand by the science.”
The manifesto is available in both Welsh and English and will be circulated to political parties and candidates ahead of the 2026 election.
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