Backing Local Firms Fund – Localising the Welsh food system for the public plate

Castell Howell, a Welsh wholesaler, has launched two projects to strengthen and localise the Welsh food system. These initiatives are working to improve Welsh vegetable supply chains and provide schools and hospitals with locally sourced, nutritious meals.

The two programs, Authentic Foods (Hirwaun)  and Celtica Foods, are working together to increase the availability of healthy, Welsh-grown food in public sector meals. They aim to:

  • Build a strong, reliable network that connects food from farms to public plates.
  • Create climate-resilient, commercially viable multi-portion meals for schools and hospitals.

Background and vision

Castell Howell Foods (CHF) is a wholesaler committed to embedding sustainability and local sourcing into food supply across Wales. Recognising the risks of heavy reliance on imported produce, CHF set out to reshape public sector supply chains. By prioritising Welsh-grown vegetables and meat products, the two new programs set out to deliver healthy meals to schools and hospitals that are:

  • Resilient to a changing climate
  • Supporting local growers
  • Helping to reduce carbon emissions
  • Positively impactful to the food system beyond financial profit

“The supply chain has to work collaboratively, especially with the impacts of climate change being seen. We need that holistic collaborative approach to reverse out of the dependence on an increasingly risky global food system.” – Edward Morgan – ESG Manager Castell Howell Foods 

The approach

From the start Castell Howell knew that any effort to unpick and detach from the global food system would need to involve those at every stage of the food process – from growing, washing, packing and distributing to processing, tasting, purchasing, catering and eating. The Wholesaler needed investment to change the supply chain. The Welsh Government’s Backing Local Firms Fund enabled the two complementary projects to be launched:

  • Authentic Foods: focused on evolving the public sector vegetable supply chain by working with growers, local authority caterers, and procurers to develop lower-carbon, nutritious multi-portion meals using Welsh produce.
  • Celtica Foods a project working to develop a new product of value-added Welsh meat-based foods for schools and wider public sector supply, including hybrid recipes enriched with vegetables and pea protein.

Growth, progress and early outcomes

Authentic Foods

Between 2024 and 2025, CHF purchased and transported 32 tonnes of Welsh vegetables all delivered directly from working with 8 Growers to local schools. The Authentic Foods project has allowed CHF to work closely with Food Sense Wales through the Welsh Veg in Schools Programme, alongside companies like, Holden’s Bwlchwernen Farm, Awens Organics, Bonvilston Edge, and Langton’s Farm. Strong relationships have been developed across the supply chain, making Welsh food a priority at the heart of public sector catering. This has helped shorten the supply chain for vegetables and supported local Welsh businesses.

Thanks to the support from this project, CHF has been able to help farmers meet Farming Connect standards and improve on-farm efficiency processes. A valuable finding was that previously, Welsh-grown vegetables had to be sent out of Wales to be washed and packed, then sent back to be eaten. This project provided funding to wash and package the vegetables. Now, with new equipment, vegetables like carrots can be grown, processed, and eaten within Wales, saving time, money, and reducing environmental impact.

This initiative provides a useful example for wider public procurement of local Welsh vegetables. It highlights the importance of transparent procurement practices that consider not just price but also social benefits, environmental effects, and community involvement. Understanding the true social value of these purchases helps Local Authorities make more informed decisions about selecting local Welsh produce, beyond just considering the cost.

 “One of the key outputs is our collective understanding of what can be grown profitably in Wales, what schools want, and aligning harvest with menus, and menus with harvest. Spinach, chard, cucumbers, tomatoes and courgettes available during the summer months, however with limited scope to sell to the public sector when harvested in July/August.” – Edward Morgan – ESG Manager Castell Howell Foods 

Celtica Foods and Authentic Foods

Since 2023, CHF, through Celtica Foods and Authentic Foods, have created a suite of school meals that are healthier, better for the planet and more cost-efficient to produce. Dishes such as Welsh Beef Bolognese, Cauliflower Cheese, and tomato bases enriched with spinach and chard will improve meal nutrition and lower carbon impacts. The creation of Welsh meat hybrid meatballs containing Welsh beef/lamb with spinach and chard will improve nutritional density and cost efficiency through local sourcing.

Understanding how important consumer feedback is, the project organised tasting sessions with over 500 pupils and their families across Caerphilly, Torfaen, Swansea, and Carmarthen. This allowed the children to share their honest opinions about meals made with Welsh produce. Their feedback helps to refine and improve the recipes, ensuring the meals are enjoyed by children. Additionally, this process provides valuable insightsfrom the children eating the food to the local farmers and growers, helping strengthenthe connection in the food supply chain.

Challenges and lessons learned

Understanding the obstacles to creating a localised food supply chain was helpful for both projects and will guide future efforts. The main lessons learnt include: 

  • Appreciating that growers need fair ways to share risks across the supply chain and long-term collaborative planning to keep them engaged. 
  • Recognising the investment required in infrastructure and capital costs to scale up volume, e.g. harvesting equipment, storage, processing & bagging and extending life.
  • Making sure that growing seasons align with the school term for meals can be tricky, especially with changing weather patterns that bring more extreme conditions. The project found that if food was harvested too early, it created gaps in the system, such as limited storage and facilities for extending life (such as freezing), which made it harder to expand production. 
  • The price of Welsh lamb can fluctuate quite a lot, which makes it difficult to plan costs consistently. 
  • When delivering leafy greens and lamb-based meals to children, acceptance varied depending on the region; so, customised marketing will be needed to encourage more children to try certain dishes.

Looking ahead

In 2026, CHF aims to buy 40 tonnes of Welsh vegetables, working closely with growers to invest in the right places to increase efficiencies and reduce gap prices. The aim is to supply 12 of Wales’s 22 local authorities, whilst continuing to measure carbon emissions and focus marketing efforts on lamb and leafy greens. The company also plan to develop new hybrid products, including flexitarian options.

Investment will be needed for:

  • Infrastructure:  Larger washing and packing machines to make processes cheaper and more efficient.
  • Efficiency: Investment is also needed to improve efficiency on farms, ensure health and safety for growers, and cover the costs of automation. 
  • Availability: It’s important to reduce the difference in cost between organic and non-organic vegetables.
  • Flexibility: All calculations need to be tailored to seasonal growing, and risk needs to be accounted for to support commercial success. For example, growing vegetables on a small scale, like an acre, involves costs that we need to understand and manage, especially when upscaling to field-scale crops. Financial support, such as loans to help with cash flow, can make the scheme more sustainable. To make growing vegetables less risky, fixing prices and sharing risks with supply chain partners can be a stable path.

Both the Authentic Foods and Celtica Foods programs demonstrate that sourcing locally on a larger scale is possible, welcomed and brings environmental, economic, and social benefits. The continued collaborations between Castell Howell and local food supply partners are working to build a resilient, health-focused food system that supports Wales’s people and foundational economy.

Growing the Foundational Economy, supporting innovation, local businesses and building a resilient economy.
 
Tyfu’r economi sylfaenol, cefnogi arloesedd a busnesau lleol, a datblygu economi gadarn.
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