Major supplier says confidence lower despite signs of stability returning

FARMERS across Wales are facing another difficult year as input costs remain significantly higher than before the pandemic, according to new industry insight from agricultural supplier Wynnstay Group.

The company, which has deep roots in rural Wales and generates around sixty per cent of its retail revenue in the country, says confidence among farmers is lower than this time last year, with rising costs, policy uncertainty and tightening margins influencing spending decisions.

However, there are also signs of resilience, with many producers focusing on efficiency and forward planning to cope with ongoing pressures.

Wales at heart of business

Wynnstay, originally founded by tenant farmers in Mid Wales in 1918, has grown into a major UK agricultural supplier serving more than 20,000 farming customers through manufacturing sites, stores and on-farm services. The group employs hundreds of staff across the UK and operates a nationwide distribution network supporting livestock and arable producers.

The company says Welsh farming businesses continue to play a central role in its commercial performance and long-term growth strategy.

Cautious investment decisions

According to Wynnstay, farmers are delaying some investment decisions but are increasingly seeking value-driven solutions that improve productivity.

Feed volumes have increased across the company’s Welsh store network over the past year, reflecting demand for blended feeds that offer greater flexibility and cost control. Rather than reducing purchases outright, many farmers are matching spending more closely to performance and output.

Fertiliser demand has also been strong, with sales ahead of last year, although some farmers have delayed buying in the hope prices may fall. Global supply pressures and rising gas costs mean prices are expected to remain firm into the busy spring season.

Costs still far above pre-Covid levels

Industry data shows overall farm input costs remain significantly higher than before 2020, with feed, fertiliser, fuel, electricity and machinery all continuing to put pressure on farm margins.

While some costs have eased from their peaks, they have not returned to previous levels, influencing buying behaviour across the sector.

Margins for livestock and dairy farms were strong last year, but Wynnstay says they are now tightening, particularly in the dairy sector where milk prices have fallen and volatility remains high.

Pressure on family farms

Smaller family-run farms are under greater strain than larger commercial operations, with less financial resilience to absorb rapid market changes. Reports of rising closures among family farms, particularly in dairy, reinforce concerns about the sector’s long-term sustainability.

Government policy changes are also contributing to uncertainty. The transition away from the Basic Payment Scheme and wider tax reforms have led many farmers to postpone larger investments until there is clearer long-term stability.

Local reaction

Pembrokeshire farmer Chris James said the situation reflected what many farmers were experiencing locally.

“We’ve definitely noticed the squeeze over the past year or two,” he said. “Costs for feed, fertiliser and fuel are still much higher than they used to be, and that makes you think twice about every decision. Most farmers I know aren’t cutting back on production — they’re just trying to be more efficient and careful with spending.”

He added: “People want to invest and move forward, but it’s hard when you don’t know exactly what the long-term policy picture will look like.”

NFU Cymru has also warned that rising costs and policy uncertainty continue to weigh heavily on farm businesses across Wales, with confidence affected by concerns over future support schemes and wider economic challenges. The union has called for greater long-term certainty to allow farmers to invest with confidence and maintain domestic food production.

Weather shocks impact behaviour

Extreme weather during 2025 — including a very dry spring followed by periods of intense heat and a challenging wet autumn — also affected purchasing patterns, with farmers spacing orders and prioritising essential inputs as conditions changed.

Ordering behaviour is now returning to more normal patterns as conditions stabilise.

Outlook for 2026

Despite ongoing pressures, Wynnstay says it is cautiously optimistic about the year ahead.

Many farmers are making careful decisions around efficiency, nutrition and planning, and the company believes there are opportunities for businesses to strengthen their position through 2026 with good cost control and smart investment.

Summing up the sector, the company said Welsh agriculture remains resilient, with farmers showing determination and adaptability despite continuing challenges.

Welsh wild wine producer to represent West Wales at London celebration

A LLANDOVERY-based wild wine producer will bring a taste of the Welsh countryside to the heart of London as part of a major St David’s Day food showcase at the iconic Spitalfields Market.

Mydflower, known for its naturally crafted lightly sparkling wines, will take part in the consumer event over the St David’s Day weekend on Saturday (Feb 28) and Sunday (Mar 1). The showcase will feature more than a dozen Welsh food and drink producers and aims to highlight Wales’ growing reputation as a modern food nation producing world-class products.

The company’s distinctive wines are made using spring water from the Brecon Beacons alongside locally sourced botanicals and berries. The brand focuses on rediscovering centuries-old recipes inspired by the wild landscapes of Wales, producing natural raspberry and elderflower wines with a fresh, lightly sparkling finish.

David Ruttle, co-founder of Mydflower, said: “St David’s Day is a brilliant opportunity to celebrate Welsh culture in the heart of London, and we’re proud to be part of it with Mydflower. Our wild wines are made using pure Welsh spring water from the Brecon Beacons, traditionally foraged fruits and flowers, and Champagne yeast, creating something lighter, fresher, and naturally sparkling.

“Events like this are a chance to share our story, introduce more people to a new kind of premium Welsh drink, and bring a taste of the wild Welsh landscape to a wider audience.”

Spitalfields Market — one of London’s most historic trading destinations — has built a strong reputation for showcasing high-quality produce, making it an ideal venue to promote Welsh food and drink to new audiences. Visitors over the weekend will be invited to explore a range of products reflecting the quality, character and ambition of contemporary Wales, from heritage-inspired favourites to innovative modern brands.

Celebrating St David’s Day through food

The event forms part of a wider St David’s Day programme organised by Food & Drink Wales, the Welsh Government’s food division, which supports the sector while also using food and drink as a way to express national identity, creativity and pride.

Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies MS, said: “St David’s Day is the perfect moment to celebrate the exceptional quality and creativity of Welsh food and drink producers. From award-winning charcuterie to innovative craft spirits, the businesses showcasing at Spitalfields represent the very best of what Wales has to offer.

“Our food and drink sector is built on strong foundations — protected geographical status, sustainable farming practices and generations of skilled production. But it is also a sector that continues to evolve, with producers combining their heritage with fresh ideas and ambitious growth plans.

“Events like this are vital for connecting Welsh businesses with new markets and demonstrating to buyers across the UK that Wales is a modern food nation with products that can compete at the highest level.”

MS highlights concerns from local firms as Wales employment figures lag behind UK

BUSINESSES in Pembrokeshire are feeling increasingly squeezed by rising costs and a challenging economic climate, according to feedback gathered at recent engagement events alongside the latest labour market statistics for Wales.

New figures show employment in Wales has risen slightly to 71.8%, but remains the lowest rate in the UK, where employment stands at around 75%. Economic inactivity has also increased from 24.5% to 24.8%, the highest level in Great Britain, while UK unemployment has reached a near five-year high amid slowing wage growth.

Commenting on both the statistics and the experiences shared by business owners across the county, Samuel Kurtz MS, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, said many local firms were struggling under the combined pressure of higher taxes and operating costs.

“Behind these statistics are real businesses and real livelihoods here in Pembrokeshire,” he said. “Whether it was at the recent Pembrokeshire business rates online forum or the follow-up business surgery, I heard first-hand from entrepreneurs who feel squeezed, not supported by the status quo.”

He added: “When Wales has the lowest employment rate in the UK and the highest economic inactivity, while businesses here in Pembrokeshire say they are being squeezed from every direction, that should be a wake-up call to both governments.”

At the events, business owners from sectors including tourism, hospitality, retail and manufacturing raised concerns about rising business rates, energy bills and the cumulative impact of tax changes from both Cardiff and Westminster. Many reported scaling back plans to hire, invest or expand because of financial pressures, with some facing decisions about whether they could continue operating.

Examples shared included a tourism operator reporting holiday booking cancellations and staffing challenges as households tighten spending, a café owner in the county town considering shorter opening hours after sharp increases in energy and staffing costs, and a manufacturing firm warning that competitiveness was being undermined by high rates and regulatory burdens.

“Labour and Plaid Cymru are failing to get a grip on the economy in Wales,” Mr Kurtz said. “Their stitch-up budget in Cardiff Bay, alongside tax rises from Westminster, have piled pressure onto employers who are already battling higher costs just to stay afloat.”

Despite the challenges, economists point out that Wales’ labour market trends are influenced by a range of factors beyond government policy alone, including long-term health conditions, demographic changes and the rural nature of much of the Welsh economy, all of which contribute to higher levels of economic inactivity compared with other parts of the UK.

A Welsh Government spokesperson said supporting businesses and jobs remained a priority, highlighting measures such as business rates relief, economic development funding and targeted support programmes.

They said: “Businesses across Wales, like those elsewhere in the UK, are facing pressures from global economic conditions, inflation and higher borrowing costs. We continue to provide significant support to help firms grow, create jobs and invest in their communities.”

Mr Kurtz said the Welsh Conservatives were proposing an alternative approach to support job creation and restore business confidence.

“We are putting forward a bold, fully costed tax-cutting agenda to kickstart the economy, including abolishing stamp duty and cutting business rates, to undo Labour and Plaid’s economic damage and get Wales working again,” he said.

“Pembrokeshire has enormous potential, from our energy sector to tourism and food production, but businesses need a government that backs enterprise rather than burdens it. I will continue to stand up for local employers who feel ignored and squeezed by rising costs.”