An eight-week seeking of stakeholders’ views on how to protect work on the development, marketing and sustainability of the red meat industry in Wales against the erosions of inflation has been opened by Hybu Cig Cymru-Meat Promotion Wales (HCC).
The Wales red meat levy board is proposing that a new mechanism is introduced to allow annual levy rates to track inflation and maintain the organisation’s growing and dynamic domestic and international work programme in real terms.
The wider stakeholder conversation follows an opening 'horizon scanning' session of HCC’s Industry Liaison Group - AIMS, BMPA, BRC, CLA, FUW, LAA Wales, NFU Cymru, NSA Wales, TFA Cymru, YFC and the Welsh Government - which exists to ensure that the strengths, weaknesses, opportunities and threats facing the industry are fully considered.
The group considered how over the last 10 years inflation has shrunk the levy by nearly one pound in every five collected annually. These inflationary increases have resulted in HCC having a reduced ability to invest and it fears further erosion could have serious impacts on day-to-day delivery.
HCC proposes that rates each financial year would reflect annual inflation in the previous calendar year, as measured by the CPIH consumer price index.
The group considered that for 2023 that would mean an increase of 6p in the producer element of the sheep levy, 9p for pigs, and 38p for cattle.
HCC head of Sustainability and Future Policy, Rachael Madeley-Davies said: “By linking levy rates to annual inflation, using a tracker, it would ensure that levy income is maintained in real terms and would mean that in the future, levy income would remain at a level where our ability to invest is not compromised.
“This would future-proof the supply chain in Wales and would avoid any one-off large increases in rates.”
She further explained that any increase in levy income will ensure 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.
It would allow HCC to focus on its well-developed portfolio of activity including positioning red meat from Wales as a premium product; international trade development; responding to the challenges around food security and sustainable food production; consumer advertising; Welsh brand work; knowledge transfer and R and D; market intelligence, and diet, health and nutrition issues.
HCC’s full advisory document is available on the HCC website and the closing date for responses is 16th December 2022.
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
