Processors deliver scathing review of troubled HCC

Red meat processors Kepak and Dunbia have delivered a scathing review of the troubled levy body Hybu Cig Cymru – Meat Promotion Wales (HCC) as part of a Senedd Economy, Trade and Rural Affairs committee inquiry on Thursday (27 March).

The committee launched an inquiry in February to consider if HCC was still fit for purpose, following reports of a toxic culture and key members of staff leaving.

See also: HCC inquiry hears better levy payer engagement needed

A group of former board members had also previously written to the Welsh government, urging it to carry out an independent review into HCC’s governance.

Reputation issues

Providing written evidence, Paul Edwards, managing director at Dunbia, said the organisation “appeared rudderless” and “unable to execute its core functions”.

He also felt his firm’s relationship with the levy body had deteriorated in the past 18 months.

Kepak said it felt HCC had not been fighting the corner for red meat producers in the way it had done in the past.

In written evidence to the committee, Kepak UK livestock procurement director Prys Morgan, a former HCC employee and board member, warned the negative publicity surrounding HCC had undermined customer confidence and trust in the organisation.

Performance

Both processors were deeply unimpressed with the performance of HCC, citing as key issues the duplication of work performed by other levy boards and processors, and ineffective marketing that had no positive impact on red meat sales.

While both processors agreed there was a need for a levy body, which should be within the control of the industry, current staffing levels appeared to make it difficult for HCC to deliver against its wide remit.

“As levy payers, we need to understand the root cause of this as it brings into question the ability of the organisation to deliver against its remit,” Mr Morgan said.

Governance

The processors were clear that good governance was needed to regain industry confidence and that the majority of board members should be levy payers.

HCC recently appointed two new board members – Paul Savage, who has previously held senior roles at Arla Foods and is the current chair of South Caernarfon Creameries, and Dewi Hughes, a former HCC employee and current head of animal health services at the business advice provider Mentera.

HCC response

Responding to concerns around the reputation, performance and culture at the organisation, HCC chief executive Jose Peralta said staff morale was “getting better” and that it was remarkable how staff had performed, given the circumstances.

HCC chair Catherine Smith added that HCC was following its business plan and had “delivered against all of its KPIs”.