Pembrokeshire farmers who source National Assembly funds to tap into the dog breeding market will saturate an already adequately supplied market, registered breeders claim.

The Assembly's decision to financially support farmers who want to diversify into commercial dog breeding - through its Farming Connect Farming Enterprise Grant - has incurred the wrath of local breeders.

Adam Barrah, of the Fishguard-based Dog Training Weekly, suggested a similar scheme, which operated in Eire to fund greyhound breeding, had spawned huge problems.

"The stray greyhound problem in Eire is now so bad that many of these intelligent and demanding animals are shipped over to rescue centres in Wales for re-homing,'' he said. The Farming Connect grant is aimed at subsidising the improvement of buildings for kennels. The Assembly sees it as a way of maintaining the viability of family farms.

Farmers are entitled to up to five days free business planning advice. The two farmers who have so far received support for dog breeding enterprises are existing breeders. "I have been told by a Welsh Development Agency operator that one farmer has been given funds to convert buildings into breeding kennels,'' said Mr Barrah. "This does suggest a scale that is just not acceptable.''

"Reputable dog breeders have a small number, perhaps just one bitch, that is bred once in two or three years and the puppies are raised in a family situation, growing up to become well socialised animals with good temperament.''

He claimed rescue centres were already 'brimming with dogs' and added: "If the breeding of dogs is to be governed by what is legally acceptable and not morally acceptable, then this is a disaster and a leap backwards for animal welfare in the UK."

In Pembrokeshire, licensed breeders are inspected twice a year by a local authority inspector, who visits unannounced.