October 15, 2010

Welsh red meat levy set to jump 20%

Red meat levy payers in Wales, England, face a 20% hike in payments after marketing body Hybu Cig Cymru (HCC) set out plans to increase rates for the first time in a decade.

The increase, if approved, would lead to farmers and processors paying an extra GBP1.10 (US$1.76) for cattle and GBP0.25 (US$0.40) for pigs entering the human food chain.

HCC said the move was essential if it is to continue to invest and develop the red meat industry in Wales, as falling livestock figures coupled with inflation has steadily eroded the organisation's income.

Levy income has fallen by more than 35%, from almost GBP4 million (US$6.4 million) in 2005 to a projected GBP2.5 million (US$4 million) in 2011.

According to HCC chairman Rees Roberts, reduced income will inevitably have a negative impact on its effectiveness in developing the red meat sector, both in promoting the Welsh Lamb and Welsh Beef brands and in areas of research and development which encourage farmers and processors to improve efficiency and productivity.

Since the last levy increase in 2001, the industry has had to deal with two outbreaks of foot-and-mouth disease as well as low returns for farmers, said Roberts.

"The situation now, however, is unsustainable if we are to continue to provide the high quality service that the industry demands. That is why we feel the time is right to seek an increase in levy rates," he added.

A nine-week consultation exercise, involving all sectors of the red meat chain, starts October 14 and ends on December 16. The new levy rates are planned to come into force on April 1, 2011.