Possible new mechanism for red meat levy

Charles Sercombe with laptop_275_186

This alternative, developed jointly by the three organisations, would take into consideration the scale of economic activity undertaken by the red meat industry in each country, rather than only where the animal is slaughtered.

The AHDB board, Quality Meat Scotland (QMS) and Hybu Cig Cymru (HCC) have been in talks for some time considering how changes could be made to the current system.

At present, levy is collected at point of slaughter regardless of where animals spent their lives and where value has been added to beef cattle, sheep and pigs.

Under the potential new system, animals that have spent part of their lives in different countries would have the levy apportioned across those different countries.

The levy boards have also agreed to look at new ways of working in partnership on activity where there is mutual benefit, such as supporting export market access work in countries where there is potential to sell pig meat, sheep meat and beef from across Britain.

NFU livestock board chairman Charles Sercombe said: “We believe the estimated levy that is up for review, thought to be in the region of £2m, could be ring-fenced and used to promote all UK red meat at home and abroad. New and developing markets do not always recognise the devolved status of the UK, so promoting red meat under a single British brand, that is recognised the world over is likely to be more effective. I strongly believe greater benefits will be achieved by us all working together to secure new and emerging markets.

“The processing sector is primarily based in England because that is where the majority of consumers are – Welsh and Scottish beef and lamb producers benefit from selling their livestock into the English market and with an established processing sector gain better access to export markets as a result.

“Should the levy money redistributed then HCC/QMS must pay fully towards research and development, generic promotional activity and export access that benefits all British beef and lamb producers.”  Undoubtedly the levy will take more money to collect as the system will inevitably become more complicated. Therefore I would like assurance that levy money is not wasted on administrative processes rather than spent on activities for the benefit of levy payers.”

Any change could not happen until at least 2017/18.