Welsh ministers have approved a 4.2% levy rise to fund Hybu Cig Cymru – Meat Promotion Wales (HCC), the first rise in 13 years.
The levy is used by HCC's to fund activities to assist with the development of the Welsh red meat industry, notably work that would not be done under normal market conditions.
The rates were increased after a mechanism was introduced in 2023 to link future levy increases to the Consumer Prices Index, including owner occupiers' housing costs (CPIH).
The mechanism did not include an automatic annual increase but allowed the HCC Board to make any increase recommendations to ministers based on the previous calendar year’s CPIH.
Prior to the new rise, the Welsh red meat levy rates had not changed since 2011, and increases before that were in 2001 and in 1996.
Laura Pickup, HCC’s head of strategic marketing, said it was essential that the Welsh red meat industry had a sufficiently funded red meat body.
"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.”
Gareth Jones, HCC’s head of finance, added: “The decision to link levy rates to annual inflation, using a tracker, ensured that levy income was maintained in real terms and would remain at a level where spending power is not compromised.”
Earlier this week, Scottish ministers approved an increase in Quality Meat Scotland's levy rates following an extensive consultation with the industry.
It comes after Defra ministers approved AHDB's levy increases in all four sectors it supports – pork, beef and lamb in England, dairy in GB, and cereals and oilseeds in the UK.
The new rates will also be implemented from April 2024.
