Foundational Economy

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 low, new growers struggle to enter horticulture, and planning rules often stop 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 was created to address these issues. Its vision is to grow more agroecological horticulture businesses across Wales through foundational economy principles:

• Unlocking publicly owned land for food 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 Brecon Beacons 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 enterprises began operating at Wern Farm, 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 a new dwelling and establishing three horticultural enterprises on a 15-hectare site.
• Over 2,400 tree varieties have been planted, and regenerative agroecological practices are improving soil health and biodiversity.
• Further infrastructure improvements and the introduction of renewable energy is being supported by funding from the Shared Prosperity Fund.

Policy and System Change

• The new planning guidance for Rural Enterprise Dwellings was adopted by Powys County Council and Brecon Beacons 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 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 creating entirely new 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 among planners, growers, and land officers was critical. This project garnered quick support from farmers and engagement with the local community helped to avoid objections.

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. Furthermore, by using public land, such as county farms, can bring 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 providers 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 demonstrated that, with the right planning, interpretation, collaborative partnerships, and practical testing, Wales can unlock land for new agroecological enterprises and build a thriving, resilient horticulture sector. The project has already had a measurable impact in Powys and is influencing national policy. It offers a replicable model for using planning as a tool to strengthen local food systems and the Foundational Economy, embedding long‑term benefits for communities, the environment and the nation.

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 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.

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.

“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

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.

“Food Hour has been such a success at the school. We’re usually dragging parents in from the playground to join our courses… this was fully booked within an hour of being advertised, and they all turned up! The children and teachers loved getting involved.”
— Claire Crockford, Deputy Head, Trelai Primary School

Introduction

The Food Hour project, funded through the Welsh Government’s Backing Local Firms Fund, is a hands-on educational initiative designed to build lifelong food skills and increase food confidence among children and families. Designed in alignment with the new Welsh curriculum, the project integrates cooking, growing, nutrition, and sustainability into everyday learning, nurturing a new generation of informed, confident food citizens.

Building on the success of the nationally recognised Food & Fun programme, Food Hour is the latest innovation delivered in collaboration with Food Sense Wales, Public Health Nutrition and Dietetic Services at Cardiff and Vale University Health Board and the education catering team at Cardiff Council, made possible by the Welsh Government’s Foundational Economy team.

---

Background: Building on proven success

The Food & Fun pilot began in 2015 as a response to concerns around food insecurity and holiday hunger. Designed to provide nutritious meals, physical activity, and food education during school holidays, the pilot was a major success and has since been adopted as a national programme across Wales.

Inspired by that model, Food Hour was developed to embed food education into the school day, equipping children with the knowledge, skills, and enthusiasm to engage with food in healthy, sustainable ways. Additionally, the Food Hour initiative sought to encourage more students to take advantage of the Wales Free School Meal program.

---

The food hour approach

The Food Hour is a daily, curriculum-aligned programme delivered in primary schools, centred around four core themes:

1. Nutrition Education
2. Practical Cooking
3. Growing Food
4. Sustainability

Through these themes, pupils explore where their food comes from, how to prepare it, and how to make informed choices, both for their health and the planet. The sessions focus on real-life, practical learning, including:

• Cooking and budgeting skills
• Seasonal and local food awareness
• Growing fruit and vegetables
• Sustainable food systems

To support whole-community engagement, the project also includes:

• Staff training for school and catering teams
• Family engagement sessions such as “cook and create” events
• Take-home recipe kits and training opportunities for parents to build a home-school food connection

---

Early outcomes and impact

The pilot phase has reached 210 Year 5 pupils across six primary schools, with overwhelmingly positive feedback from teachers, pupils, and families and a self-reported increase in the uptake of free school meals due to taking part in the Food Hour.

Feedback Highlights:

• 97.5% of pupils enjoyed the Food Hour sessions
• 90% learned something new
• 100% participated in healthy eating activities
• 94% enjoyed the recipes they cooked
• 95% reported learning about sustainability

“Brilliant parent bonding experience! Even my child with food aversions enjoyed making the food—even if he didn’t eat it.”
— Parent from a Cook & Create session

“I was nervous about how my Year 5s would behave, but they all loved it and were really engaged. I thoroughly enjoyed myself too!”
— Year 5 Teacher, Hywel Dda Primary School

Evaluation

---

Challenges and learnings

Like many school-based pilot projects, timing proved a key challenge. The project began gaining momentum just as the summer term ended, requiring the team to consult, develop, and deliver simultaneously.

Despite this, the pilot demonstrated the concept’s potential and produced a robust set of resources that are ready to be rolled out or picked up at a later date if immediate funding isn’t secured.

The Backing Local Firms Fund was pivotal in making this pilot possible, providing the funding and capacity required to bring the concept to life in real-world settings.

---

Looking Ahead: From Pilot to Programme

Following the path of Food & Fun, partners hope to see Food Hour evolve from pilot to national programme, with a broader rollout across primary schools in Wales.

Discussions are already underway about:

• Adapting content for younger and older primary age groups
• Scaling delivery across more schools and regions
• Evaluating impact on Free School Meal uptake and long-term behaviour change

While continued funding will be essential for this next stage, the tools, partnerships, and enthusiasm are already in place to take Food Hour forward.

---

Conclusion

The Food Hour project is more than just a series of school activities, it’s a foundation for long-term change. By equipping children with the skills to cook, grow, and think critically about food, it lays the groundwork for a healthier, more food-literate generation.

Backed by the Backing Local Firms Fund, this project shows how education, health, and the foundational economy can come together to create a stronger, more resilient Wales—one Food Hour at a time.