NFU Cymru welcomes alternative red meat levy options document submission

NFU Cymru has welcomed news that the red meat levy bodies in Wales, England and Scotland have submitted a briefing document to Ministers outlining an alternative option for the distribution of red meat levy income between the three countries.

The new mechanism, if implemented, could see an additional £1 million returned to Wales annually as a result of livestock originating from Wales being slaughtered across the border.

For many years NFU Cymru has lobbied for a distribution of levy income that takes a fair account of the level of red meat production in Wales. The current system that has seen levy money collected and used in the country that the animal was slaughtered has seen Wales lose out as a result of a net move of livestock, particularly cattle, out of the country to be slaughtered.

NFU Cymru believes this system is flawed in that the basis of levy distribution is based solely on the location of abattoirs, a decision that is completely outside the control of primary producers.

NFU Cymru President Stephen James said, “We are pleased that the GB red meat levy bodies have come together and agreed a mechanism that looks to address the inequality in the current system without adding any additional cost for producers or processors and that maintains the basis of the current levy collection mechanism.”

NFU Cymru has also welcomed the news that the levy bodies will, where relevant, work together and jointly fund activities that have mutual benefit to all red meat levy payers. Mr James said, “Whilst the majority of our focus in Wales must be on marketing and promoting our own PGI brand, there are areas where it is prudent to work together and share resource such as funding producer focussed research and development and towards promoting the positive health benefits of red meat as part of a balanced diet.”

If Ministers are minded to accept the proposed mechanism and make the necessary legislative changes then consultation will be required with the industry which means it is likely to be April 2017 at the earliest before changes could be implemented.

Mr James said, “For a number of years now NFU Cymru has raised this matter with numerous UK Government Ministers. Whilst we are delighted at the agreement reached between our levy bodies we will continue to use every available opportunity to press for this change to be implemented as early as possible to ensure that we have the maximum resource available to support the development, marketing and promotion of the red meat sector in Wales.”