Hybu Cig Cymru - Meat Promotion Wales (HCC) and Quality Meat Scotland (QMS) have announced that levy rates are set to increase by 3.3% as of 1st April.
A mechanism to link all future levy increases to the Consumer Prices Index including owner occupiers’ housing costs (CPIH) was recommended and agreed in April 2023, following a consultation with industry.
HCC rate increase
In April 2024, the rates were increased in line with CPIH, and the same mechanism has been applied for April 2025, says HCC.
The latest increase has been approved by the Welsh Government Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs. HCC said that this would help the levy body to continue to further progress on market opportunities and support with the challenges facing the industry.
“Numerous challenges are currently testing the industry’s resilience.”
José Peralta, HCC
José Peralta, HCC chief executive, 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 reduced.
“Numerous challenges are currently testing the industry’s resilience, including trade, socio-economic and environmental concerns, all of which could have a substantial impact on future performance and profitability.
“It is therefore crucial for the industry to have an appropriately funded levy body to develop, promote and market Welsh red meat, both at home and abroad, and maintain the momentum already achieved. This inflationary rise will help support delivery by HCC of key priorities for levy payers.”
Peralta continued: “HCC continues to be busy at work supporting the industry, from assisting processors and exporters in gaining and growing market access, from Dubai to Tokyo, through to implementing consumer campaigns in domestic markets aimed at increasing brand awareness and propensity to purchase our iconic Welsh red meat brands.
“As HCC enters its last year of the current business plan, we look forward to consulting widely with industry on their views around how HCC should support the Welsh red meat industry in the years to come.”
QMS levy review
QMS also plans to raise the levy to align with the CPIH as of 1st April to ensure “QMS’s financial model remains sustainable”, which will support key activities such as marketing, market development, and maintaining Scotland’s Scotch brands domestically and internationally.
“This adjustment is vital to ensuring QMS remains financially sustainable.”
Sarah Millar, QMS
Sarah Millar, chief executive of QMS, said: “In 2024, after thorough consultation with industry stakeholders and QMS members, it was agreed to implement an annual levy increase in line with the Consumer Prices Index including Housing (CPIH). As communicated to levy payers in early March, a 3.3% levy rate increase will take effect from 1st April 2025.
“This adjustment is vital to ensuring QMS remains financially sustainable, allowing us to continue supporting Scotland’s iconic Scotch brands, driving promotional efforts, and advancing market development both within the UK and internationally.”
In a statement, QMS said that the annual inflationary increase will avoid the risk of a significant levy increase after several years and that the mechanism will be reviewed at the end of five years to ensure it remains “fit for purpose and continues to provide value for money”. It does not foresee the levy going up beyond the CPIH rate unless there are extreme market conditions or high inflation.
QMS highlighted actions taken in the past year, including:
- Revamping and launching new consumer marketing campaigns, including the successful “When You Know You Know” campaign
- Leading a four-nation approach to livestock numbers modelling
- Enhancing reputation management to promote red meat as part of a healthy diet to communities and decision makers
AHDB plans
The Agriculture and Horticulture Development Board (AHDB) has said that it has no plans to change its levy rates for England in 2025/25.
