Senedd committee report urges shake-up of HCC

A report into troubled red meat levy body Hybu Cig Cymru (HCC) suggests the organisation needs a major overhaul, with control returning to the industry.

The recommendations are made by the Senedd’s Economy, Trade and Rural Affairs Committee (Etra), which launched an investigation into the levy body at the start of the year amid concerns over HCC’s effectiveness, internal turmoil and leadership challenges.

Having received evidence from stakeholders, HCC and deputy first minister Huw Irranca-Davies, the committee is now calling for sweeping reforms and a full review of HCC’s governance and ownership, including a suggestion control of the levy body could be returned to the Welsh meat industry.

See also: ‘Toxic culture’ allegations rock HCC amid staff exodus

Andrew RT Davies MS, chair of the Senedd’s Etra committee, said: “After a difficult period marked by internal disruption and loss of confidence, this is a pivotal moment to rebuild trust, strengthen governance, and ensure the organisation is truly accountable to the levy payers who fund it.”

Turbulent times

The levy board has faced turmoil over the past 18 months with a reported toxic culture and key members of staff leaving in the past year.

Its former chief executive, Gwyn Howells, also resigned in June 2024 after a year-long sickness absence.

HCC faced further criticism in December 2024 after former employees released a scathing letter accusing its leadership of fostering a toxic workplace culture and mishandling serious bullying allegations.

It is understood that a legal challenge by former chief executive Mr Howells is ongoing.

Committee review findings

With HCC’s governance and structure presenting major concerns, the committee recommends a full Welsh government review and suggests that ownership could potentially be returned to levy payers.

The committee also calls for increased industry representation on the board.

Currently, only three out of 10 board members are levy payers and there are no representatives from the processing sector, following the departure of Glyn Rhys Davis, an agricultural surveyor, and Prys Morgan, procurement director for Kepak Retail, based at Merthyr Tydfil, in June 2024.

Mr Davies said stronger industry representation at the highest levels within HCC could have helped to prevent the recent turmoil in the organisation and foster better leadership.

“To prevent similar issues in the future, it’s crucial for us to make sure the industry’s voice is heard at every level,” he added.

The committee further recommended that the Welsh government addresses the levy board’s financial sustainability, and introduces measurable targets and transparent reporting to ensure value for money, as well as ensuring improved visibility and communication with farmers, processors and auctioneers.

To avoid duplication of work and maximise impact, HCC should work jointly with other levy bodies and Farming Connect, it said.

Industry response

British Meat Processors Association chief executive Nick Allen welcomed the report.

“The most important recommendation is that the board has stronger industry representation; that is the quickest and most effective way of making sure HCC is doing the things that the industry needs done,” he told Farmers Weekly.

National Sheep Association chief executive Phil Stocker added that the recommendations, “while they may make for uncomfortable reading for some”, are critical if “HCC is to make sure it is fit for a changing future”.

NFU Cymru Livestock Board chair Rob Lewis said: “Currently, the body is almost entirely funded by the levy collected from producers and processors and as such it is imperative that levy payers feel they have genuine accountability for how the money they provide through the levy is spent.

“The organisation requires a level of independence from Welsh government, with levy payers actively involved in the appointment process to the board.

“We would suggest that consideration needs to be given to the industry [farming unions and processor associations] having permanent seats on the board going forward.”

Farmers’ Union of Wales president Ian Rickman added that the findings validated its longstanding calls for greater transparency and enhanced engagement for levy payers.

A Plaid Cymru spokesperson warned that failing to implement the recommendations would “risk losing further support and trust from the agriculture sector and damage the reputation of Welsh produce across the globe”.

However the Association of Independent Meat Suppliers (Aims) called for a new board and chair to be appointed to support the new chief executive.

“Without immediate action, the much prized and premium asset of Welsh Lamb could well be lost within a commoditised market,” said Aims head of communication Tony Goodger.

HCC response

HCC chief executive, José Peralta, agreed with most of the recommendations but was clear that as a wholly Welsh government-owned organisation, “the recommendation around governance arrangements is a question for the Welsh government directly”.

The Welsh government said it is reviewing the report and will respond to the recommendations in due course.