Welsh livestock farmers could shoulder higher meat promotion levy

Welsh livestock farmers could be asked to pay a higher levy by the body which promotes red meat in Wales.

The organization, Hybu Cig Cymru (Meat Promotion Wales) has set out plans to ask those producers to pay an additional 16p for sheep, £1.10 for cattle and 25p for pigs slaughtered for human consumption, generating an additional £645,000 income in the first year.

If approved, the new levy rates would come into force on 1 April 2011 and would be the first levy increase in a decade. However HCC’s retiring chairman, Rees Roberts said it was necessary, due to a combination of falling livestock numbers and inflation.

Levy income has fallen by more than 35%, from almost £4 million in 2005 to a projected £2.5 million in 2011.

“HCC’s effectiveness in delivering a range of services to develop the red meat sector and promote Welsh products will be curtailed unless we take action now,” said Mr Roberts.

“Falling livestock figures coupled with inflation has steadily eroded the organisation’s income. That is why HCC is today announcing plans to increase the statutory levy it collects from producers and processors.”

There has been mixed reaction from livestock producers across Wales.

Most farmers admit they don’t have the necessary skills to market their own beef and lamb, but question if they are getting value for money from the levy.

Rhydian Jones, who, with his family, runs one of the largest registered herds of Welsh Blacks in Wales is opposed to any levy increase. “Hybu Cig Cymru spends a lot of time and money promoting Welsh red meat but I’m not convinced we are seeing much growth in demand,” he said.

“At the end of the day these people don’t have to go out and sell the meat. We have created our own market with local butchers, the levy hasn’t done that for us.”

But Denzil Jenkins, who runs a flock of sheep on the Preseli Hills in Pembrokeshire, believes the market for Welsh red meat would be a different one without promotional activity and as beneficiaries, producers should not resent a levy increase.

“There are some clever people who can both rear and market their own stock, but I’m not one and neither are most farmers . We have to rely on others to do this for us and Hybu Cig Cymru does a decent job on our behalf,” he said.

Ceredigion suckler beef producer William Lewis questions whether this promotion work is actually having any major impact on sales. He doubts that the value of any additional sales generated through promotion exceeds the total levy income.

“I wouldn’t support a levy increase right now. I’ve just sold a group of cattle and I was paid between £120 and £150 less per animal than last year. Where is the value for money in my levy payments on those prices,” says Mr Lewis.

HCC says a nine-week consultation exercise will now follow, involving all sectors of the red meat chain. This will include meetings with farmers and processors including five open meetings around Wales.

The open meetings will all start at 7pm and will be held on the following dates and venues:

• Monday, 15th November – Glynllifon College, Caernarfon
• Wednesday, 17th November – Clwyd Gate Restaurant, Ruthin
• Thursday, 18th November – Maesmawr Hall Hotel, Caersws
• Monday, 22nd November – Manor Hotel, Crickhowell
• Wednesday, 24th November – Ivy Bush Royal Hotel, Carmarthen