HCC inquiry hears better levy payer engagement needed

Farming unions in Wales have highlighted concerns over the performance of red meat levy body Hybu Cig Cymru (HCC), saying it needs to do more to engage with levy payers against a challenging backdrop.

Responding to the Senedd’s Economy, Trade and Rural Affairs committee inquiry into the troubled levy body, NFU Cymru and the Farmers’ Union of Wales said that HCC needs to communicate better with levy payers and be more accessible.

But both organisations also clarified that the work of the levy body is important, and their recent contributions to ministerial roundtable discussions were crucial.

See also:  Senedd committee announces inquiry into HCC

The red meat promotion body has repeatedly hit the headlines in the past 18 months, with high staff turnover, a reported toxic culture and bullying allegations casting a long shadow over the organisation and its leadership.

In an evidence session on Wednesday (12 March), the committee heard how it is fundamental for the future of the Welsh red meat sector that HCC retains and enhances credibility as an effective organisation.

Collaboration

While the levy body was considered essential in supporting the sector, it was suggested it makes greater strides in collaborating with other levy bodies in a pre-competitive space, providing greater value for money to levy payers.

The committee heard that HCC should focus on undertaking relevant research and development work without duplicating efforts across the industry.

“There are opportunities to use combined resources with other levy bodies to look at ways in which the UK can benefit from markets further afield,” said FUW head of policy Gareth Parry.

Mr Parry added that HCC must also seek new ways to engage with levy payers by “attending livestock markets and being more visible, so that levy payers can raise their opinions”.

NFU Cymru head of policy Dylan Morgan told the committee HCC also needed to “look at wider communication channels to get its message across”.

“Producers in Wales pay a significant amount of money through the levy each year, and they want to make sure there’s a return on that investment,” he said.  

Funding

Concerns were also raised over the financial situation the red meat promotion body finds itself in, which could impact its ability to deliver its remit.

An operational deficit of more than £500,000 in the year to 31 March 2024 was concerning, NFU Cymru said.

With the fall in livestock numbers also directly impacting the levy available to HCC, Mr Morgan admitted there were concerns over how it could do its job.

“Historically, HCC would have had significant funding through the EU rural development plan – that has come to an end.

“We haven’t seen that funding replaced by domestic funding through the Welsh government.”

Business plan 

Work previously carried out by HCC, notably under the leadership of former chief executive Gwyn Howells who resigned in June 2024, was welcomed by the unions.

Providing written evidence, the FUW however asked for a review of the current business plan and strategic objectives in light of the recent appointment of José Peralta as a new chief executive, and following many changes in staffing and the membership of the Board.

Given the “serious claims and the estimated sums of levy monies that have been spent on these investigations [into bullying allegations and an investigation into former ceo Gwyn Howells],” the FUW questioned HCC’s ability to develop, promote and market Welsh red meat effectively.

Mr Parry added that HCC now needs to consult with levy payers and industry bodies and “rebuild its relationship” – efforts which must go beyond a six-month consultation.