HCC increases levy rates for Welsh livestock farmers

Welsh red meat promotion body Hybu Cig Cymru (HCC) has announced it is raising its levies from 1 April, in line with the Consumer Prices Index measure of inflation.

An additional 3.3% of levy will be applied to all cattle, sheep and pigs slaughtered in Wales, paid by both producers and processors.

See also: HCC inquiry hears better levy payer engagement needed

The move, which has been approved by Welsh rural affairs secretary Huw Irranca-Davies, aims to boost funds for the organisation, to continue progressing market opportunities for Welsh lamb and beef.

HCC has said that linking the levy increase to annual inflation means levy income is maintained in real terms at a level where spending power is not reduced.

Referring to the challenging industry conditions, HCC’s chief executive José Peralta said: “It is crucial for the industry to have an appropriately funded levy body to develop, promote and market Welsh red meat, both at home and abroad, and maintain the momentum already achieved.”

Critics

The Association of Independent Meat Suppliers (Aims) has, however, been critical of the increase, saying the organisation should be managing its affairs better.

“As a result of what appears to be gross mismanagement, HCC have ended up paying expensive lawyers when they should have been concentrating more on levypayer issues,” said Norman Bagley, head of policy at Aims.

Providing written evidence to the Welsh government’s Economy, Trade and Rural Affairs (Etra) committee inquiry into HCC – which is reviewing the organisation’s effectiveness, value for money, and relevance – the Farmers’ Union of Wales criticised the levy body over how it consulted with farmers in 2022 on the levy increases.  

“Given the importance and sensitivity surrounding the topic of increasing levy rates, it was felt that the process should have been used to provide levypayers with a far better opportunity to engage with HCC on issues such as future priorities for levypayers, areas of ongoing concern and other such matters directly related to levy expenditure,” it said.

Scotland

Producers and processors in Scotland are also seeing an increase of 3.3% in their levy from 1 April. 

After thorough consultation with industry stakeholders and Quality Meat Scotland (QMS) members in 2024, it was agreed to implement an annual levy increase in line with the Consumer Prices Index (including housing).

Sarah Millar, chief executive of QMS, said: “This adjustment is vital to ensuring QMS remains financially sustainable, allowing us to continue supporting Scotland’s iconic Scotch brands, driving promotional efforts, and advancing market development both within the UK and internationally.”