The Welsh red meat levy could increase by 8.8% next year to match the current rate of inflation, Hybu Cig Cymru - Meat Promotion Wales (HCC) has proposed.
The levy organisation has launched an 8-week consultation on a proposal to introduce a mechanism to link Welsh red meat levy rates to inflation.
For example, if the annual inflation in 2022 is 8.8 percent, the levy rates that farmers pay for 2023-2024 would increase by 8.8 percent.
HCC said the move would ensure that levy income was maintained in real terms and would mean that in the future, levy income would remain at a level where spending power was not compromised.
It explained that inflationary increases had reduced its levy income, resulting in the body having a reduced buying power.
The organisation added that it was not seeking more money to deliver activities, as levy rates would only increase at the same pace as annual inflation.
"HCC is proposing that a mechanism is introduced where annual Welsh red meat levy rates track annual inflation, to ensure that levy income is maintained in real terms," HCC said.
It is proposed that levy rates each financial year would reflect annual inflation in the previous calendar year, as measured by consumer price index including owner occupiers’ housing costs (CPIH).
This would apply to levy collected in Wales, and not to the levy HCC receives as a part of the redistribution.
HCC said: "An increase in levy income will ensure that the Welsh red meat industry has a sufficiently funded red meat body to undertake development, promotion and marketing of Welsh red meat, both at home and abroad."
The closing date for any comments is 16 December 2022.
