Foundational Economy

NetRet Group: Helping Welsh SMEs lead the Net Zero transition

Project outline

NetRet Group Ltd aimed to deliver PAS 2030:2023 certification to 20 Welsh SMEs, providing full support through digital onboarding, pre-audit assistance and the audit process to boost the retrofit supply chain in Wales.

PAS 2030:2023 is the UK British standard that sets out the required processes, quality management, and installation rules for adding energy-efficiency measures to existing homes.

Positive outcomes

NetRet exceeded its target by supporting 24 Welsh SMEs in preparing for PAS 2030:2023 certification. The project positioned Welsh companies to lead the market in retrofit and decarbonisation services.

NetRet assisted contractors in developing quality management systems, conducted pre-audits, and delivered customised training plans. The project also facilitated supplier engagement through online briefings and direct outreach.

Participating SMEs anticipated workforce growth of six additional employees on average. NetRet commissioned two self-employed inspector roles to support increased audit capacity.

Looking ahead

NetRet will promote success stories and expand support through a new Foundational Economy funded Renewable Membership Programme, helping Welsh contractors achieve MCS or Flexi Orb certification and strengthening the renewable energy supply chain in line with Wales’ Net Zero goals.

“The Foundational Economy grant let us take Welsh SMEs from interest to audit-ready for PAS 2030. Through digital onboarding, pre-audit reviews and practical training, firms reached PAS 2030 readiness and adopted a quality-first culture.”

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Cyfle Building Skills: Supporting future talent for a low carbon Wales

Cyfle Building Skills has been at the heart of construction training and employment in South West Wales. Their Shared Apprentice Scheme has been running since 2013 and has grown into the largest Shared Apprentice Scheme in the UK. In 2020, they received the Queen’s Award for Enterprise: Promoting Opportunity through Social Mobility and in September 2025, they proudly celebrated supporting their 1000th apprentice.

Project outline

Cyfle Building Skills secured Foundational Economy funding in September 2023 for a project that aimed to help create a pipeline of future talent of green skills, encouraging and promoting new green technology opportunities for electrical and plumbing employers to deliver Net Zero/Low Carbon Work Experience activities for young people across the South West Wales Region. The project had a specific focus on engaging young people who were far from the employment market.

Positive outcomes

Interest in the Cyfle Work Experience Scheme was apparent from the start, with over 200 applications received. With funding, Cyfle were able to take on 120 electrical and plumbing learners with hands-on, low carbon training placements, supported by 60 engaged employers.

The training was tailored to address specific skills gaps and trainees were able to quickly contribute to live projects and gain experience. All participants completed a comprehensive programme including onsite placements, mentoring, and employability workshops.

After completing the scheme, 89% of participants secured apprenticeship or employment opportunities. Cyfle also employed two new members of staff to assist with project management and retained them after funding ended.

The project increased workforce capacity, improved project delivery for employers, and promoted net zero awareness and carbon literacy among young people. One candidate received a Youthbuild Award in London in 2024 for outstanding achievement.

Looking ahead

Cyfle aims to expand its impact by training even more apprentices and further supporting the construction industry and Wales’ net zero ambitions.

“The Foundational Economy grant, which supported work experience opportunities for young people, has enabled Cyfle to expand the scheme across the Region, supported by Clients, Colleges and SME Contractors.”

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Building a resilient food system for Wales as we adapt to a changing climate

Food availability, one of our basic needs, is expected to undergo significant changes in the coming years. In Wales and the UK, our food travels from soil to plate through supply chains that are particularly vulnerable to some of the most pressing challenges we face today. Climate change, biodiversity loss, the rising cost of living, and public health are all interconnected with food systems, posing considerable risks to their stability and resilience. However, Wales has been taking great strides to tackle the complex challenges within the food sector.  

Our current food system in Wales is highly dependent on global food systems. In the UK, 45% of food supply is reliant on imports, leaving our food systems at risk of global shocks. However, a recent report from Sustain looked at the resilience of local food chains and found that not only can local food supply chains be resilient to shocks, but they will also strengthen local economies. The food system as a whole, one of the main pillars of the Foundational Economy in Wales, will benefit from local food systems, leading to ‘higher incomes for producers and greater job creation’, with more wealth being retained within local communities instead of being distributed to what Sustain refer to as ‘shareholder-driven supermarkets’. This work of localising food systems is well underway, with local food partnerships set up to develop a more sustainable food future specific to the local area and its needs. We highly encourage you to see what is going on in your local and regional area and get involved.  

A National Food Strategy for Wales

At the Royal Welsh Show in August 2026, the Welsh Government announced the National Food Strategy with plans for a whole system approach from farm to fork. This new strategy will cover the entire food system and will be informed by an expert group established to shape the future of Welsh food. Wales’s food and drink supply chain, as a key part of the Foundational Economy, is worth over £28 billion and employs one in six workers across the country. The Soil Association’s 2026 Election manifesto sets out a good summary of the changes needed for a sustainable food system, prioritising healthy food, investing in nature-friendly farming, and stepping up action on climate and nature. 

We have all experienced the increasingly drastic heatwaves this summer (2026) as a direct result of climate change. Speak with any grower or farmer this year, and you will hear that yields have been incredibly low due to the prolonged drought, especially following the last three years of poorer and poorer yields. These challenging conditions have meant that, now more than ever, it is important to support local suppliers. The likelihood of extreme weather is only set to rise as a result of ongoing climate change, and instability in global affairs has only driven food prices up and up. Our food systems need to become more resilient and integrated with other policy areas such as health, energy and education.  

Actions you can take towards improving your own food resilience

Localising our food systems is the best way forward to build resilience and food security in Wales. Alongside the policy changes we will see, we can also recommend actions anyone can take to help food resilience: 

  • Research local community gardens – not only great for community fruit and veg growing, but also fantastic for well-being, learning skills and growing your community connections. 
  • Compost food scraps – healthy soil is the basic building block of growing food; if you can make your own fertiliser, you save money and introduce a circular system that can sustainably reduce your raw food waste whilst improving soil quality for growing crops (even in urban areas!) 
  • Support local growers – with veg box schemes, at the farmers’ market, or directly with growers. Producers tend to grow a wider variety of crops than what is available in the supermarket; this helps spread out the risk of crops failing for the supplier and helps you to explore different fruits, vegetables, beans and pulses that are seasonal, fresh and often pesticide-free.  
  • Grow, forage and preserve your own food – this can be as simple as picking blackberries and sticking them in the freezer, turning them into jam, or planting out spring onions, used lettuce stems and tomatoes. There is a lot of food that doesn’t need to be grown from seed and can be grown on a windowsill. Looking into how to preserve food we have grown or bought can help reduce food waste, a major source of carbon emissions. 
  • Use apps such as Olio and Too Good to Go – these help shops and restaurants give away unsold food for free, or s at reduced prices to fight food waste. 

The challenges facing the food system in Wales are complex and wide ranging but the solution we need will produce not just better outcomes for our plates and our farmers but also for our communities and our wider economy. Individuals can play their part in this transition too: stay involved, keep informed, shop locally and seasonally when you can, have a go at growing something new, build resilience for our food supply chains and keep an eye on Wales’s progress. 

Five resilient food system projects in Wales

Since 2023 Cynnal Cymru have been supporting a network of projects in Wales working towards resilient food systems on behalf of Welsh Government. This network brings together Welsh projects that focus on strong local and regional food networks for reduced reliance on imported products whilst also ensuring that local supply chains includes farming systems that support healthy resilient soil with diverse climate resilient crops. Read about just some of the many inspiring projects here:

Social Farms and Gardens – Future Farms project works to help small‑scale, environmentally friendly horticulture growers in Powys unlock land for local food growing.

Food Sense Wales – Welsh Veg in Schools programme aims to increase the production and consumption of organic Welsh-grown vegetables by supplying them directly to primary schools.

Castell Howell – 2 projects working to improve Welsh vegetable supply chains and provide schools and hospitals with locally sourced, nutritious meals.

Menter Môn – Larder Cymru, working to increase the use of Welsh food products in public sector school meals.

Carmarthenshire County Council – Future Generations Menu, redesigning primary school menus and embedding local, seasonal produce into public sector food provision.

PLANED – Enhancing rural access to fresh food through community vending machines.

If you are interested in getting involved with our Food Network or learning more about our work on the Foundational Economy, email: shwmae@cynnalcymru.com

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Building collaborative communities of practice

Woodknowledge Wales strengthened Wales’s timber and housing sectors by building collaborative Communities of Practice (CoPs) that support the transition to a low-carbon, sustainable economy. Through extensive engagement with over 95 organisations, the project has fostered new partnerships, supported policy development, enabled innovation in public procurement, and contributed to Wales’s net zero ambitions.

Wales’s commitment to reaching net zero emissions has brought greater focus on building with low-carbon materials, sustainable forestry, and strengthening the local economy. Timber is an important part of this shift, offering benefits such as reducing the overall carbon footprint of buildings, making structures more energy-efficient, and supporting local jobs and communities. 

However, the timber and housing industries face some difficulties, including complicated supply chains, limited options for training, tough competition, and a lack of cooperation between different sectors. 

Woodknowledge Wales (WKW) works to support teamwork and shared efforts across forest-based industries to boost prosperity and well-being in Wales. The Low Carbon Timber Networks project aims to tackle these challenges by creating strong partnerships that bring together housing providers, forest managers, manufacturers, designers, builders, researchers, and other key groups to work together and develop shared solutions.

The approach

The Low Carbon Timber Networks project delivered an ambitious program of sector-wide engagement:

  • 28 Community of Practice meetings, held both online and in person, covering topics such as forestry land use and contractors.
  • Engagement coordinated with over 95 organisations, including social housing developers, architects, timber frame manufacturers, sawmillers, contractors and land‑use experts, helping to improve and strengthen the supply chain networks.

Impact

The Communities of Practice (CoPs) created a variety of practical and strategic benefits. The Strengthened Networks built a thriving network of 60+ Welsh organisations, expanding to over 95 participants during the project. This work enhanced collaboration across forestry, manufacturing, construction and housing. The Communities of Practice (CoPs) created a variety of practical and strategic benefits. Additionally, the network was able to create and benefit from training and skills development sessions, based on the specific needs of the industry, and provided valuable skills and knowledge.

The Communities of Practice (CoPs) served as advice-sharing spaces for Welsh Government projects. They provided valuable insights for the Welsh Government’s Timber Industrial Strategy and played a part in major programmes like Tai ar y Cy. This project helped develop ideas for procurement that align with net zero goals and encourage greater use of Welsh timber. By promoting the use of low-carbon building materials and supporting housing providers to cut down the amount of carbon embedded in buildings, the initiative helps strengthen local supply chains that are vital for Wales’s sustainable future.

This joint effort across different sectors helped to bring about new ideas and solutions that covered all parts of Wales’s supply chain.

Challenges

Woodknowledge Wales identified several challenges and responded proactively:

  • Engagement capacity varied, especially among small businesses. To manage this WKW increased outreach and used site visits to maintain participation.
  • Competition across the sector sometimes restricted collaboration. However, Neutral, trusted facilitation helped overcome this.
  • Gaps in training and future workforce pipelines were evident. WKW fed into skills‑development planning and influenced sector education conversations.

Looking ahead

Woodknowledge Wales aims to build on the success of the Low Carbon Timber Networks by:

  • Expanding CoP membership to new sectors and disciplines.
  • Strengthening the forestry education network to address long-term skills needs.
  • Continuing to support government and industry in scaling low-carbon construction.
  • Developing new opportunities for locally owned businesses within the Foundational Economy.
  • Acting as a central enabler of sustainable growth through Welsh timber.

Woodknowledge Wales is strategically positioned to enhance its impact and contribute to the development of a resilient, low-carbon built environment in Wales. This project underscores the importance of building trust-based networks and maintaining flexibility in engagement strategies across all sectors of the Foundational Economy. Through initiatives like this, Wales is progressing towards its commitment to achieving net-zero emissions.

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Circular Economy Innovation Communities programme (CEIC Programme) – How circular economy principles can help Welsh SME’s work towards sustainability

Introduction to context

Wales’s Foundational Economy, encompassing everyday essential services such as care, housing, food, transport and energy, has long experienced structural challenges, particularly among smaller organisations facing capacity constraints, limited innovation infrastructure, and barriers to adopting circular and fair‑work practices.

These challenges are particularly acute among SMEs, which often lack access to structured learning and collaboration networks. FEIN was created to address these systemic barriers by providing a practical, regionally rooted framework that aligned with the Well-being of Future Generations Act and the Welsh Government’s ambitions for Net Zero and a fairer economic landscape.

The approach

The Circular Economy Innovation Communities programme (CEIC Programme) is 6-month programme introducing design thinking and circular‑economy principles. FEIN engaged 34 organisations from the Cardiff Capital Region and Swansea Bay Area through a structured programme of:

  • Experiential workshops
  • Mentoring and specialist support
  • Network building
  • Peer‑learning activities with practical planning and innovation tools

The programme was enriched by collaboration with partners such as WRAP Cymru and Cwmpas, who provided technical guidance on procurement, marketing, resource efficiency, and fair‑work implementation. Participants developed innovation, HR, and Net Zero action plans tailored to their organisational context, while establishing a regional network across South Wales spanning Cardiff Capital Region and Swansea Bay Region to support ongoing collaboration. Participants consistently reported that the interactive format deepened understanding and translated effectively into workplace practice.

Experiential learning activity

Impact

Between 2023 and 2024, 34 organisations joined the programme; including 21 small, 7 medium and 6 large organisations. During their participation in this programme, the participants – 17 from organisations in the Cardiff region and 7 in the Swansea Region – developed:

  • Clean growth / Net zero plans
  • Fair work / HR development plans
  • Innovation plans

Group photo of the Cardiff Capital Region cohort

The programme generated meaningful improvements in innovation confidence, sustainability practices, and workplace culture.

  • 80% of participants reported increased innovation skills and understanding of circular and foundational economy principles
  • 77% reported improved circular‑economy knowledge
  • 72% improved innovation knowledge
  • 94% of participants recommended the programme
  • 55% of organisations adopted the real Living Wage, with a further 30% planning to do so, demonstrating a major shift toward fairer work practices

The development of multiple innovations, Net Zero, and fair‑work plans provided organisations with practical roadmaps for future action. This action has contributed to an increase in Fair Work adoption, an increase in innovation-active SMEs, and a decrease in carbon footprints across participating SMEs. FEIN also strengthened relationships between SMEs and public‑sector partners, contributing to a more connected and resilient regional ecosystem.

You can watch the video case studies and participant testimonials here.

Some organisations that credit CEIC with their circular economy success thanks to participating in the FEIN programme include:

  • Balmoral Tanks who worked on a challenge to reduce stock being held on the shop floor by 25% to reduce cost and were able to rearrange factory and introduce new machines due to cost savings. Link to video case study here.
  • D&G Office Interiors Ltd worked on bridging the gap between facilitating and providing a service of reusing furniture for their clients. Thanks to the programme, they made connections with other companies and charities working in the field of reusing office furniture to find synergies and scope potential collaboration opportunities. D&G Office Interiors Ltd started a trial project to engage with customers on how to reduce their carbon footprint and implement circular economy principles. Link to video case study here.
  • Awen Cultural Trust joined the CEIC programme with the vision to grow more produce at its facilities rather than relying on outside procurement. After 18 months of work, Awen Cultural Trust are now producing the fruit and veg used in the menus of Bryngarw House directly on site. Read the full story here.

Challenges

Some SMEs faced limited capacity to fully engage with circular‑economy practices or sustain innovation activity beyond the workshops. Overall, the programme was praised for its inspirational style, with only one comment finding aspects of the content academic in tone (Source: independent external evaluation). Regional economic disparities also shaped the readiness of organisations to adopt new practices. Nonetheless, the structure of the programme, particularly the mentoring and peer‑learning elements, helped organisations overcome many of these obstacles.

Looking ahead

Evaluation findings suggest strong potential for scaling the FEIN model. Many participants expressed interest in continued support, further funding opportunities, and additional collaboration. The FEIN model has demonstrated clear value as a driver of inclusive, sustainable economic development, deeply aligned with the Future Generations Act and Wales’s broader ambition for a resilient foundational economy.

Since delivering FEIN, the CEIC team secured funding for future iterations of the programme via the UK Government Shared Prosperity Fund helping participants from 40 private and third sector organisations to find ways to save 1,150,639.33t of CO2e emissions in the next five years.

Quotes from participants

What did participants value most about the programme?

“Everyone should understand the process of design thinking an innovation to be able to make the changes to they want to see in their business efficiently and effectively.”

“A great source of knowledge, even if you think you know, you don’t!”

“I most valued the working relationships built in our community and the shared knowledge and ideas which have really helped build our own innovation plans and think of the big picture from time to time.”

“It’s so good. Such a great way to understand where you fit within CE and in honing skills and devising an innovation plan. Thank you all!”

“Empowered to approach stakeholders and try to influence stakeholders. Empowered to attempt to implement my innovation plan.”

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Social Farms and Gardens – Unlocking Welsh land for nature-friendly food growing

To advance Wales’s Ambition for a more resilient, localised and nature-friendly horticulture sector, the Future Farms partnership has supported the planning permission and infrastructure for 3 new small-scale horticultural enterprises with Rural Enterprise Dwellings in Powys. By laying the groundwork, creating planning permission guidance for small-scale growers and building infrastructure to pilot the guidance, the Future Farms project has taken big steps toward increasing land access for small-scale agroecological horticulture throughout Wales.

Background and vision

Wales faces a challenge: a limited local food supply. Domestic fruit and vegetable production is insufficient to meet our nutritional needs, new growers struggle to enter horticulture, and the interpretation of planning rules inhibits small-scale farmers from living on their land. To tackle this, Wales needs a more localised food system that uses agroecological methods – farming that supports biodiversity, ecosystem health, fair work, and strong local communities.

The Future Farms Partnership came together to address these issues. Its vision is to grow more agroecological horticulture businesses across Wales through foundational economy principles:

  • Unlocking suitable land for agroecological fruit and vegetable production
  • Supporting fair livelihoods for growers
  • Building a rural economy based on local supply and community wellbeing

By boosting small-scale horticulture on public land for local fruit and vegetable production, the partnership will help public bodies buy Welsh produce locally, seasonally and sustainably.

The project has piloted 3 new horticulture enterprises on Wern Farm near Newtown, Powys, to show what’s possible when planning policy positively supports small farms.

The approach

The Future Farms project created three small horticulture businesses with homes for growers through four key phases between 2024 and 2025:

Phase 1 – Planning Permission

The project secured approval for three micro-horticulture enterprises on a Powys County Council farm, including temporary Rural Enterprise Dwellings (REDs).

Phase 2 – Policy & Guidance

The project worked with Specialist consultants (TerraPermaGeo), SFG planners and Powys CC and Bannau Brycheiniog National Park Authority to develop new planning guidance for REDs in small-scale horticulture.

A collaboration with Shared Assets, the Landworkers’ Alliance co-produced a practical “How To Guide” for growers to apply for REDs in small-scale horticulture.

Phase 3 – Infrastructure & Testing

The project commissioned essential surveys (SuDs, flood, ecology, tree assessments) and submitted a full planning application—creating a template for future growers.

Phase 4 – Supporting Growers

After planning permission approval, three growers were recruited to live at Wern Farm and build horticulture enterprises, backed by partnership organisations and the wider horticulture network.

This approach combined policy innovation, practical testing, partnership working, and community engagement.

Future Farm’s progress so far

Piloting Wern Farm

  • The project piloted the new guidance at Wern Farm, securing three new dwellings and enabling three horticultural enterprises on a 15-hectare site.
  • Over 2,400 trees have been planted, and regenerative agroecological practices are improving soil health and biodiversity.
  • Further infrastructure improvements and the introduction of renewable energy was supported by funding from the Shared Prosperity Fund.

Policy and System Change

  • Adapted planning guidance for Rural Enterprise Dwellings was adopted by Powys County Council and Bannau Brycheiniog National Park Authority, with strong support from planning teams.
  • A national horticulture planning task group has been established.
  • The guidance is now being considered for inclusion in future Planning Policy Wales updates.

Capacity Building and Knowledge Sharing

  • Weekly partnership meetings built trust and shared understanding.
  • The resources shared and created include:
    • “Criteria for Land for Small Farms”
    • “Notes for Developing Leases”
    • Survey lists for horticulture planning applications
    • Grower‑oriented planning tools
  • Over 35 growers contributed their knowledge and experience to the How To Guide.
  • Over 60+ planning officers were trained in the new planning guidance as of January 2025
  • Ongoing support continues through steering group members and new partnerships.

Challenges and lessons learned

Key lessons learned from this project have been invaluable in guiding its progress and informing future projects:

Policy planning

While influencing policy can be challenging, early engagement with planning policy officers and working from the base of existing policy, interpreting and aligning it with a specific goal, proved crucial.

Initially, the planning phase of this project took longer than expected due to workload pressures within local planning authorities, the need for additional surveys and data, and the typical delays associated with complex rural applications. However, the project found that by working with public bodies with a proactive, “can-do” attitude, the process can run smoothly.

Governance and Capacity

The large, multi-partner steering group created challenges related to time management and decision-making clarity. However, being flexible and smaller working groups, and clearer reporting structures, although stretched staff capacity, ultimately lead to enhanced efficiency.

Identifying partner skills early and allocating roles clearly proved essential. Effective collaboration between planners, growers, and land officers was critical.

Looking ahead for future farms

Projects of this nature have the potential to substantially enhance the Foundational Economy by strengthening local food systems and facilitating community wealth development. By increasing the local production of fresh, seasonal vegetables in a way that supports nature recovery objectives, we can support sustainable rural livelihoods. The project has demonstrated an alternative approach to the use of public assets (county farms) to bring wider, important economic, social, and environmental advantages to Wales.

The success of the Future Farms pilot has generated a lot of momentum to expand this approach across Wales. Future plans for this project include:

  • Collaborating with more Local Authorities to adapt and roll out the guidance.
  • Working with housing associations to address accommodation needs for new farmers.
  • Identifying further county farm sites in Powys suitable for horticultural enterprises.
  • Continuing training for growers navigating the planning system.
  • Supporting national policy development on horticulture and rural enterprise dwellings.

Future Farms has shown that with careful planning, collaboration, and practical testing, Wales can make better use of land for sustainable farming projects and develop a strong edible horticulture sector. The project has already made a real difference in Powys and is influencing national policy. It offers a model that others can follow, demonstrating how planning can be used to strengthen local food systems and support Wales’s social and environmental wellbeing in the long term.

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Castell Howell – Localising the Welsh food system for the public plate

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.

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Food Sense Wales: Welsh Veg in Schools

“We are excited to be growing veg for schools because it’s important that children have nutritious food and know where it comes from. Healthy food, healthy children, healthy Wales.”
— Geraint Evans, Welsh Grower

Introduction

The Welsh Veg in Schools initiative is a pioneering project that aims to increase the production and consumption of organic Welsh-grown vegetables by supplying them directly to primary schools. By aligning local food production with public sector procurement, the initiative offers a powerful example of how sustainable food systems can support health, education, and the environment, while strengthening local economies.

Launched with support from the Backing Local Firms Fund, the project brings together farmers, distributors, policymakers, and educators to deliver fresh, organic produce to school meals across Wales creating meaningful connections between children and the food they eat.

Background and vision

At the start of this project, an overwhelming 94% of vegetables used in primary schools in Wales were sourced from outside the country, often frozen and non-organic. The Welsh Veg in Schools project set out to change that by:

  • Increasing local organic vegetable production.
  • Creating new markets for Welsh growers.
  • Promoting sustainable agriculture and biodiversity.
  • Supporting children’s health and food education.

The project is coordinated by Food Sense Wales, in collaboration with Castell Howell (Wales’ largest food distributor) and Farming Connect Horticulture, run by Lantra. These partners are part of a wider network of growers and stakeholders working to create a fairer, more resilient food system in Wales.

Growth and progress

Woman smiling inside a poly tunnel used for growing veg

What began three years ago with just one grower has now grown into a vibrant, multi-stakeholder project. By 2024:

  • 8 growers were actively supplying schools.
  • 14 tonnes of organic Welsh veg were used in school meals.
  • The project reached 219 schools across 6 local authority areas – Cardiff, Carmarthenshire, Monmouthshire, Powys, Bridgend and the Vale of Glamorgan.
  • 400 children visited four farms enabling them to connect directly with the land and the farmers growing their food.

By 2025, the initiative has scaled to:

  • 15 local growers participating.
  • 12 local authorities engaged.
  • 3 wholesale partners distributing produce across school catering networks.

This expansion means that approximately 1 million portions of local, organic veg will be served to school children in Wales.

Challenges and lessons learned

2023 presented significant challenges:

  • Delays with funding disrupted planning cycles, misaligning crop production with school meal requirements.
  • Adverse weather led to reduced yields, impacting supply.

However, these challenges led to valuable learning:

  • Earlier coordination with local authorities began in late 2023, allowing better crop planning.
  • More growers were brought on board to build resilience and reduce risk.
  • Castell Howell’s existing supply chains absorbed surplus produce, avoiding waste.

The Backing Local Firms Fund played a critical role in allowing experimentation, system development, and the formation of new networks. It also opened doors to collaborate with other food projects across Wales.

Impact and looking ahead

The project has proven that a local, organic supply chain for school food is not only possible but desirable. Interest has grown across Wales and beyond, with stakeholders from across the UK contacting the team to learn how to replicate the model in their own regions.

Key highlights to date include:

  • A shift from imported to local organic veg in school meals.
  • Creation of alternative income streams for Welsh growers.
  • Hands-on learning experiences for children, connecting food, farming, and health.
  • The establishment of a new North Wales growers’ group, expanding the reach of the project across the country.

In April 2025, Food Sense Wales published a series of reports noting the project’s achievements. You can read the various reports by clicking on the relevant links below:

Welsh Veg in Schools: Summary Report

Welsh Veg in Schools: Full Report

The Story of Welsh Veg in Schools

Looking to the future, Food Sense Wales is actively exploring new funding opportunities to grow the project further. The ambition is clear: to bring more Welsh-grown organic produce into more Welsh schools, involving more local authorities, more growers, and more children in the journey toward a sustainable, healthy food system.

Conclusion

The Welsh Veg in Schools project exemplifies how public procurement can drive meaningful change, from farm to fork. It strengthens local economies, supports sustainable farming, and helps young people understand and appreciate where their food comes from. Thanks to the support of the Backing Local Firms Fund, the foundation is set for long-term, scalable success across Wales and beyond.

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Ynni Cymru: Prysor Angling Association – A community-focused energy journey

Prysor Angling Association is a voluntary organisation that manages the fishing on Llyn Trawsfynydd in Gwynedd. Llyn Traws is a trout and pike fishing venue, with a fleet of boats, that regularly hosts international fishing competitions and the Welsh fly-fishing team trials.

The Association also owns a clubhouse on the lake shore, managing it as a community venue and sub-letting to a popular café and fishing tackle shop, both hiring local employees.

Having previously rented the building, the Association bought it in 2024 to help safeguard its future as a community asset. A key driver was the building’s increasingly unsustainable energy bills and the wish to install a more viable energy system that could also deliver community benefit.

Project approach

The chosen option was a solar panel installation, to take advantage of the building’s large south-facing roof, accompanied by battery storage and EV charge points to help address the lack of charging infrastructure in the area.

Funded in part by Ynni Cymru, alongside Parc Cenedlaethol Eryri, Gwynedd Council, and Nuclear Restoration Services, and using £85,000 of its own funds, the Association managed the installation of a Smart Local Energy System or SLES comprising a 49.02kWpeak solar PV system, a 14.4kWh battery energy storage system and four EV charge points (two 60kW rapid and two 22kW fast).

Impact

The renewable energy system has reduced the clubhouse bills from a peak of around £2,000 per month to just the standing charge of c£50 during the summer, freeing up much-needed resources for other activities.  This includes refurbishing the clubhouse and supporting continued employment of three community members to manage the fishing on the reservoir.

The café’s owners have also felt the benefits of the new energy system. The café is thriving, employing a core team as well as seasonal workers, all from the local community. It is popular with those visiting the lake to fish as well as local community visitors and tourists. Through prioritising local seasonal produce, the café is also supporting local suppliers.

Challenges

Installation of the solar panels was straightforward, although it has been more challenging to connect all the SLES’s different component parts due to the number of different bodies that need to be involved – some of which the Association does not have a direct relationship with.

Prysor Angling Association itself has no paid staff and the whole process, from applying for the grant to signing off on the installation and completing reporting, has been done by volunteers, requiring a significant commitment of both time and energy. Committee members were able to bring transferable skills from professional roles to assist with this.

Next steps

This is only one part of the Association’s energy vision. It currently owns 32 fishing boats that are used on the lake and stored in an agricultural shed. Future plans include replacing the current petrol motors on these boats with electric engines that could be powered by additional solar panels located on the shed’s roof. Bi-directional charging will also be explored so that the engines, when not in use, could store energy to charge other devices or provide energy back to the grid.

The Association is also keen to explore the potential to run a subsidised community EV minibus, to help local groups overcome current transport challenges. As Rhys Llywelyn, Chair of the Association, explains, although reducing energy costs was a key driver behind the project, equally important has been “having a vision” of what a long-term community-owned energy asset could provide for the local area.

For Rhys, this has been reinforced by seeing the impact on the local community when the building was forced to close during Covid, and, in contrast, more recently, seeing how much it delivers as an attraction for visitors and locals, especially at its peak season during the summer months.

Rhys’s advice to others wanting to start a similar journey is to keep the end goal in mind but take it one step at a time – bearing in mind that although securing initial funding may be difficult, it then opens the door to other sources.

“Have a vision and then break it down into manageable chunks. Once you get one lot of funding, others tend to fall into place.”  – Rhys Llywelyn, Chair of the Prysor Angling Association

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Ynni Cymru: Menai Science Park – An SME journey towards Net Zero

The Menai Science Park (M-SParc), based on Anglesey, is Wales’ first dedicated science park. Part of Bangor University, it opened in 2019 to foster innovation and entrepreneurship through offering laboratory and office space, business support and links with universities and research institutes.

M-SParc’s aim is to provide a lasting legacy of sustainable economic growth for North  Wales, helping local communities benefit from the low-carbon technologies and infrastructure emerging around them. The approach is rooted in the area’s culture and geography and the park is a key part of its foundational economy.

The vision

In 2021, M-SParc’s Egni team was formed to oversee decarbonisation.  As the understanding and definition of Net Zero expanded however, so too did the team’s remit – moving beyond just low-carbon energy to thinking around engagement, influence and how to involve others.

As Debbie Jones, Low Carbon Innovation Manager and project lead, explains:

“We were giving lots of decarb advice to SMEs and wanted to take the same journey ourselves. Although we have a massive asset in the building, we operate independently of Bangor University and have many of the same challenges as SMEs in terms of budget pressures and keeping things going.  By being transparent in our Net Zero journey, we can help others.”

The team set a goal to not only become the first UK science park to reach Net Zero, but to become an exemplar for other SMEs to follow.

Project goals

Having already trebled the park’s initial solar capacity of 40kW and improved energy efficiency through use of thermal imaging cameras and the ‘Dim the Spark’ behaviour change campaign, M-SParc received an Ynni Cymru grant in 2024 to:

  • Install ten rooftop air source heat pumps (270 kW) to decarbonise the heating and hot water systems
  • Add an additional 35 kW to the solar PV array
  • Enhance the Building Management System (BMS) to improve data granularity and transparency
  • Act as an exemplar to support others on the Net Zero journey

Impact

By April 2025, all installations were complete, including the enhanced BMS to allow more efficient data collection and monitoring. As a result, Scope 1 emissions were brought to zero and Scope 2 emissions were also reduced.

The team are now on track to reach their Net Zero target in advance of 2030 with an 86% reduction achieved to date.

The Park had also lived up to its mission for collaboration and innovation with several aspects of the project developed through tenant collaboration and local labour and supply chains used throughout.

Insights

“The deeper you go into Net Zero, the more data you need.”

As well as optimising M-SParc’s own energy use, the enhanced BMS will also support the wider engagement needed to reach net zero – in this case potentially metering tenant energy use so that efficiencies can be incentivised through direct charging and gamification.

The team also recognised the need for cross-organisation awareness and buy-in from the start of the decarbonisation process. Providing Carbon Literacy training to staff and tenants had been one of the tools employed to create shared understanding of the climate crisis and the need for sustainable energy use.

Finally, despite the scale and ambition of the project, the team has sought to ensure that it does not detract from other sustainability priorities. Initiatives such as such as tree-planting and habitat creation have also been integrated.

Challenges

Inevitably, the journey undertaken by the M-SParc team was not all plain sailing. The challenges included:

  • Location – close proximity to residential areas and the A55 had ruled out wind turbines at an early stage, leading to the focus on solar PV and heat pumps
  • Grid capacity – the original vision of sharing energy with the local village or industrial park next door had to be put on hold due to grid connection cost and waiting times
  • Finance – the size of a loan needed for heat pump installation meant pay-back times that were too challenging for an SME to commit to. The grant was therefore essential and brought additional value in that the group could focus on an integrated system combining renewable energy generation with decarbonised heat, energy storage, zero carbon transport and smart controls, rather than individual technologies in isolation.
  • Timeframe – project delivery took place within a very short timeframe. Having an already-scoped plan, existing procurement frameworks and lean management structures alongside a period of fine weather helped.
  • Technical complexity – this was an ambitious project. The complexity of adding to previous solar arrays and installing heat pumps was helped by the support and know-how of a delivery group, led by Rhodri Daniel, Low Carbon Innovation Officer, that included many M-SParc tenants.

What’s Next?

As hoped, the Net Zero journey has already sparked collaboration with tenants and others in the foundational economy, and the team are actively seeking more. A potential roof-mounted turbine, underground wiring, additional sensors, internship opportunities, and local school engagement are all currently being explored.

Also being considered are:

  • Battery storage – a 1MW battery would enable M-Sparc, and a second building currently under development, to be completely energy self-sufficient
  • At 86% towards Net Zero, can hard-to-abate emissions be offset through biodiversity gains?

Advice

As well as achieving their own target the M-SParc team are also keen to share their learning around decarbonisation and the journey to Net Zero as widely as possible to businesses and communities, sharing impact, pitfalls and successes.

In terms of advice for others undertaking a similar project, the team found that, in their case, preparedness was essential so that plans could be implemented as soon as the funding opportunity was identified.

Although challenging in terms of resources and capacity, Debbie’s advice would be:

“Take the project to the very edge of what’s possible before the grant – and commit to the plan.”

Contact egni@m-sparc.com or visit https://m-sparc.com/grow-with-us/egni/ to find out more.

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