Welsh livestock farmers will pay 4.2% more in Hybu Cig Cymru – Meat Promotion Wales (HCC) levies from April 2024.

The levy, paid by producers and abattoirs in Wales, was first linked to annual inflation in 2023 to ensure that income was maintained in real terms.

The rates were increased in April 2023 and, following a conversation with the industry, the mechanism was introduced to link future levy increases to the Consumer Prices Index including owner occupiers' housing costs (CPIH).

Gareth Jones, HCC’s Head of Finance and Corporate Governance, said the mechanism did not include an automatic annual increase but allowed the HCC board to make any increase recommendations to the rural affairs minister based on the previous calendar year’s CPIH.

“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,’’ said Mr Jones.

For the 12 years leading up to 2023, Welsh red meat levy rates had been static; increases before that were in 2001 and in 1996.

Mr Jones said levy rate increases in the past were one-off increases agreed by the industry to reflect inflationary changes over the preceding years.

“In 2011 the rates were increased by 24%,” he explained.

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.

Laura Pickup, HCC’s head of strategic marketing and connections, said it was essential that the Welsh red meat industry had 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,’’ she said.