Kicker: Proposal will future proof promotion spend
By Abi Kay
FARMERS have expressed their concern about an outrageous Hybu Cig Cymru (HCC) plan to link Welsh red meat levies to inflation, at a time when businesses are already grappling with soaring costs.
The levy board is proposing that in future, the levy rates for each financial year should reflect annual inflation in the previous calendar year, as measured by the consumer price index including owner occupiers housing costs.
The increase would apply only to the levy collected in Wales and the portion paid by the abattoir would rise at the same rate.
If the plan is agreed, the 2023 producer element of the levy would increase by 6p for sheep, 9p for pigs and 38p for cattle.
HCC has described the measure as future proofing the levy to ensure spending on promotion and marketing of Welsh red meat is not compromised, while also preventing any large one-off rises further down the line.
But Brian Jones, a suckler beef and sheep farmer from Mold, Flintshire, hit out at the plans.
He said: While livestock farmers in Wales face huge rises on input costs well in excess of inflation, output prices for beef and lamb are seeing no increases at the farmgate. How HCC can justify an inflation-busting increase is outrageous.
Currently the board does an excellent job of serving the Welsh farmer, but we all have to share in the pain of income pressure. Welsh farmers are not a bottomless pit of financial resources.
Another livestock farmer, John Davies from Aberaeron, pointed out his own income was not linked to inflation.
When that happens, I could be in favour of supporting them, he added.
Gwyn Morris from Llanfair Caereinion agreed.
He said: I really support the need for an effective maybe even aggressive promotional body to promote our produce and I do not have an axe to grind with any HCC individuals.
But how about linking lamb and beef prices to inflation to start with and backdating them. It would be interesting to see where they would be now from 30 years ago.
HCCs head of sustainability and future policy, Rachael Madeley-Davies, told Farmers Guardian the plan was not a fait accompli and there would be a conversation over the next eight weeks to decide the way forward.
A final decision on the proposal will be made by the Welsh Government after the HCC board makes its recommendations to Ministers.
HCCs full advisory document is available on the HCC website. The closing date for responses is December 16, 2022.
