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Meat levy increase will ensure sustainability of the sector.

14-Mar-2024 - Last updated on 14-Mar-2024 at 15:52 GMT

Levy increase how put money back into the Welsh meat industry. Image: Getty

A 4.2% increase in the levy paid by producers and abattoirs in Wales is essential to the sustainability and profitability of the Welsh meat sector, according to Hybu Cig Cymru – Meat Promotion Wales (HCC).

The Welsh Red Meat Levy is a statutory levy jointly paid by producers and slaughterers raised on all cattle, sheep and pigs slaughtered in Wales. Since 2008 it has been the responsibility of HCC, on behalf of the Welsh Ministers, to collect statutory levy from sheep, beef and pigs at the point of slaughter (abattoirs) in Wales.

Levy rate increase

Levy rates were increase in April 2023, with a mechanism put in place to link further levy increases to the Consumer Price Index including owner occupiers; housing costs (CPIH). This did not include an automatic annual increase, but allowed the HCC board to make any increase recommendations to the Minister based on the previous year’s CPIH.

Gareth Jones, HCC’s head of finance and corporate governance, said: “The decision to link levy rates to annual inflation in 2023, using a tracker, ensured that levy income was maintained in real terms and would remain at a level where spending power is not compromised.”

Prior to 2023, the Welsh Red Meat Levy rates had been static since 201, with the only increases before that recorded in 2001 and 1996. Before 2023, HCC also augmented levy income with additional grant income, and since April 2021 the Red Meat Levy Redistribution Scheme has been operational, with Wales now benefiting from a redistribution of levy.

Breadth of challenges

HCC head of strategic marketing and connections Laura Pickup added: “Given the breadth and depth of the challenges facing the Welsh red meat industry, it is essential that the Welsh red meat industry has a sufficiently funded red meat body to undertake development, promotion and marketing of Welsh red meat, both at home and abroad.

“Through such a levy increase we will maintain the momentum already achieved and it aligns to the delivery expectations of our levy payers, and to the agreed objectives of the HCC Business Plan 2022-2026.”

Meanwhile, exports of Welsh Lamb and other sheep meats have grown again, whilst beef exports continue to recover.