Hybu Cig Cymru makes change to levy rates

15 March 2023

Sheep in a field

Following an extensive period of seeking the views of farmers and stakeholders, the recommendation of the Board of Directors of Welsh red meat body Hybu Cig Cymru – Meat Promotion Wales (HCC) to change levy rates in order to meet new challenges has been approved by the Welsh Government Minister for Rural Affairs, Lesley Griffiths MS.

HCC carries out a valuable and important role for the red meat industry in Wales by performing a range of important activities that individual beef and lamb producers who contribute to the levy would not be able to do on their own.

Our members are cognisant of the fact that there has been a 10-year gap since the last levy increase, and that without an increase levy income has fallen significantly in real terms, particularly in the last 12 months with current unprecedented rate of inflation. This level of reduction in income would clearly have had a major impact on the activities of the organisation.

Development

In responding to HCC’s consultation on a proposed levy increase last autumn the NFU Cymru Livestock Board were broadly supportive of the need to increase levy rates to continue with and develop the work done by HCC. The key challenge for HCC now is to show a return on the investment that every livestock farmer in Wales makes in the organisation.

It is vital that focus and support is placed into research and development. NFU Cymru believes this commitment to research and development is crucial to the future profitability and sustainability of the red meat sector in Wales.  

Changes to the levy

Beginning at the start of the new financial year on April 1, levy rates will be increased in line with inflation. This will mean an extra 6p on the farmers’ levy for sheep and 2p for processors, and a proportionate 40p increase in the cattle levy for farmers, and 12p for processors. This is the first increase in the Welsh Red Meat Levy since 2011.

Livestock farmers, just like HCC are facing unprecedented inflationary pressures, which makes it even more imperative that Welsh red meat producers can see a clear benefit and value for money on the investment they make through the levy. 

For us to be able to grow the value of livestock production in Wales whilst improving the farmed environment and meeting our net zero aspirations it is vital that focus and support is placed into research and development. NFU Cymru believes this commitment to research and development is crucial to the future profitability and sustainability of the red meat sector in Wales.  

Promoting the sustainability credentials of Welsh red meat

NFU Cymru believes that HCC must continue to play a key role in promoting the sustainability credentials of Welsh red meat production. The Welsh Way report is an excellent example of this providing the evidence base and a pathway to ensure that Wales can be world leaders in the production of climate friendly beef and lamb.  

NFU Cymru recognises the efforts made by HCC to restore and build domestic and export markets for PGI Welsh Lamb and Beef. The continued marketing and promotion and building up of both volume and value of sales is seen by our members as a high priority use of levy income. We would wish to ensure that the majority of the levy continues to be spent in this area. Members have stressed that the increased value of Welsh red meat from the work of HCC and the use of PGI should deliver returns to all components of the red meat supply chain.

NFU Cymru looks forward to continuing to work with HCC to deliver on our shared aspirations of a thriving red meat sector in Wales

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