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Meanwhile, the Welsh meat levy body Hybu Cig Cymru (HCC) has already increased their rates by 10% in April this year and will impose further annual rises in line with inflation.
AHDB is proposing a levy rise from the start of the 2024/25 financial year of between 20% to 33% depending on the sector. Levy payers are being given the opportunity to ask questions about the proposals over the coming weeks, including during AHDB’s Funding Your Future Livestream event on Thursday, November 9.
AHDB explained the purpose of increasing rates is to meet the request from levy payers to deliver more key services, including marketing and exports for the Beef and Lamb, Dairy, and Pork sectors and more independent research for Cereals and Oilseeds. They state that AHDB’s spending power has been greatly reduced by rising costs, which have been particularly affected by the increase in inflation.
Meanwhile, QMS is also proposing a rise in the levy and will be consulting with the industry this winter.
QMS chair, Kate Rowell, said: “As the world gears up to compete for high-value UK retail market access, levy bodies must also gear up to be able to deliver on behalf of businesses within their supply chains. QMS has not requested a levy increase since 2010, and we want to remain fit for the future of Scotland’s iconic Scotch brands, promotional work, and market development.
“With this in mind, as we announced at the Royal Highland Show, we plan to hold industry workshops throughout Scotland during November and December, to discuss the delivery of our five-year strategy and, as agreed by the QMS board, a proposed levy increase to fund this vital work.
“To continue to deliver good value for money and integral support to Scotland’s red meat supply chain, as well as to ensure that rising costs are managed, QMS will propose a new mechanism for setting the levy from Spring 2024, adding a small inflationary rise each year to ensure our financial model remains sustainable. This mechanism will be reviewed at the end of the five years, to ensure it remains fit for purpose.”
Executive Manager for SAMW, Scott Walker, said: “A properly resourced QMS is important to promote our products, to seek new markets at home and abroad, and to defend our sector’s reputation. In this context, we are not opposed in principle to a change in the levy rate, but we need to be convinced of the benefit of the activities on which the levy will be spent.
“We look forward to discussing with QMS their new 5-year business plan for implementing their new strategy. Value for money must be evident in everything QMS does. We are not against a new long-term funding mechanism and will consider what is being proposed against what we see in the new 5-year business plan. Levy rates need to be justified and increases should not be taken as a given. Our member companies, for example, have to earn their income increases on a day-to-day/month-to-month basis.
“We will be judging the merits of an increase in the levy by the actions proposed in the business plan and will comment more fully once we have seen the details of the business plan.”
Chair of the Scottish Beef Association, Paul Ross, said: “A levy rise is acceptable provided it is not too big an increase at one time. I would like to see that money going to the promotion and marketing of the product. Also down the line, we need proof that the increase in the levy is working to benefit the sale of our product.”
Scottish Chair of the National Sheep Association, Peter Myles, said: “The Scottish sheep industry is incredibly proud of the product it creates not only for domestic consumption but also for export. Whilst all businesses have been put under financial strain due to rising costs in recent years, livestock producers are invested in making sure they deliver a quality nutritious, and sustainable product that is world-renowned and this should be no different for the other links in the supply chain. “Those involved with expanding, maintaining, and sustaining market requirements must do so in a way that truly reflects the passion and work that goes into getting the product to the end consumer. Farmers and crofters hold QMS and the other levy bodies accountable when it comes to marketing products and are none too shy about vocalising their opinions when they feel something should be done differently.”
AHDB’s levy rise
Cattle (England only)
Producer – £4.05 to £5.06/head of cattle
Slaughterer/Exporter – £1.35 to £1.69/head
Lamb (England only)
Producer – £0.60 to £0.75/head of sheep
Slaughterer/Exporter – £0.20 to £0.25/head of sheep
Cereals and Oilseeds
Cereal grower – 46.00p/tonne to 58p/t
Cereal buyer – 3.80p/t to 4.80p/t
Cereal processor (human/industrial) – 9.50p/t to 12p/t
Cereal processor (feed) – 4.60p/t to 5.80p/t
Oilseeds – 75 p/t to 94 p/t
Dairy
Dairy farmer – 0.06p/litre to 0.08p/l
Pork (England only)
Pig producer – £0.85 to £1.02
Pig processor – £0.20 to £0.24
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