Welsh Government announces new rules to ensure ‘fairness and transparency’ for sheep farmers

A mandatory, standardised system for classifying sheep carcasses and price reporting will come into force on 28 January.

The Welsh Government regulations are designed to improve market efficiency for Welsh sheep farmers and build business confidence through consistent grading and stable product valuation.

Deputy First Minister Huw Irranca-Davies made the announcement at the FUW Farmhouse Breakfast event at the Norwegian Church, Cardiff this week.

From 28 January 2026, slaughterhouses must classify sheep carcasses and report prices using standardised criteria. This brings the sheep sector in line with rules already governing beef and pork.

The regulations create a UK-wide framework, with similar rules already operating in Scotland and England with Northern Ireland to introduce equivalent measures early this year.

The Deputy First Minister with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said: “Our iconic Welsh lamb is celebrated around the world for its outstanding quality and high production standards.

“These measures will implement a consistent methodology for classifying sheep carcasses in slaughterhouses thereby promoting transparency, fairness, and increased productivity within the sheep market.”

José Peralta, CEO of Hybu Cig Cymru – Meat Promotion Wales, said: “The new regulations, which now align with a similar position for cattle and pigs, will allow for greater data capture and analysis to be undertaken and support increased transparency within the sector.

“As a sector we must seek all opportunities for greater transparency within the supply chain to ensure that choices can be made from an informed position. The introduction of these regulations will support this.”

During his address at the event, the Deputy First Minister also outlined another significant change for 2026 – the introduction of the Sustainable Farming Scheme. The Deputy First Minister thanked the FUW and members, for the input into the Scheme’s design.

The Scheme represents a new partnership between the people of Wales and farmers – supporting the ongoing sustainable production of food, while addressing the climate and nature emergency.

The Welsh Government has confirmed its commitment to supporting farmers through this transition. Up to £238 million has been committed to the Universal layer and legacy Basic Payment Scheme in 2026, providing financial certainty.

Deputy First Minister Huw Irranca-Davies said: “I would like to reiterate the Welsh Government’s commitment to supporting Welsh family farms, not just in the short term but also in the long run. Our goal is to prioritise stability for the farming industry, ensuring to balance this with sustainability at its very core.

“It is also a priority for me to support farmers through this change, and that we are all able to pull together and offer consistent advice and support to our farmers.

“I want to build upon the important stakeholder relationships that have been developed to support our farmers to navigate this transition and enjoy a prosperous and resilient industry.”