Welsh firms losing out

Welsh food and drink companies are failing to win a significant share of the £60m spent each year on food by the region's hospitals, schools and local government, partly because they are unaware that the contracts have come up for tender.

Yet the public sector would like to source more food from local companies - that is the conclusion of the first survey into Welsh public-sector buying, unveiled at a conference last week hosted by the Welsh Development Agency (WDA).

Welsh food producers supply just one-fifth (£7.66m) of the £38.9m spent each year on food by the largest players in the public sector (see table above).

The survey, by Strategic Solutions, found that Welsh firms were failing to tender for public-sector contracts, of which half had to be advertised across Europe because they were worth more than £144,000.

Local producers were unaware of the contracts, were deterred by public-sector terms and conditions, found it hard to compete with national companies, and often had to overcome problems of continuity and volume.

"Welsh suppliers need to understand buyer requirements and to actually put in tenders for supply," said Bill Goldsworth, chairman of Wales Agri-Food Partnership. "Working with other suppliers to offset the volume issue could also help them win tenders."

Arwyn Davies, head of agri-food development for the WDA, said that while price was a key driver in awarding contracts, other issues such as freshness "could redress the balance in favour of smaller companies".

Ideas to bridge the communication gap include a publication or website for the public sector, listing local company products, capabilities and locations, and ways to alert local producers to opportunities.

Public sector spending in Wales