QMS said it would propose a new mechanism for setting the levy from spring 2024 to add a ‘small inflationary rise' each year to ensure its financial model remains sustainable
Quality Meat Scotland (QMS) has been warned it must deliver market growth if the levy is to increase, with farmers highlighting the pressure on margins.
Farmers and industry opinions have been sought by the Rural and Islands Committee on the potential of QMS raising its levy.
QMS said it would propose a new mechanism for setting the levy from spring 2024 to add a ‘small inflationary rise' each year to ensure its financial model remains sustainable.
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The model would then be reviewed at the end of the five years to ensure it remains ‘fit for purpose', QMS added.
However, farmers and industry figures provided a mixed response to the potential levy increase.
Rural Affairs Secretary Mairi Gougeon said reduced cow numbers and increased movement of store cattle out of Scotland has reduced QMS income - alongside inflationary pressures.
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Ms Gougeon also suggested raising levy ceilings could enable SSI to meet the needs of the Scottish red meat market for a ‘number of years'.
Scottish Conservative Shadow Rural Affairs Secretary Rachael Hamilton MSP described the planned levy increase as ‘totally misguided' at a time when farmers are facing ‘huge challenges' from a cost of living crisis.
William Moses, a farmer from Newton Stewart, Dumfries and Galloway, said QMS must recognise its levy payers are also in the same position of facing ‘increased costs', without a direct increase in returns.
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He added this was most acute in the less favoured area beef and sheep sector, which was the predominant sector related to QMS' work and levy base and also most dependent on support funding which had remained static.
Livestock farmer Jock Gibson, from Forres, supported a potential levy increase which would contribute to the promotion and protection of Scotch beef, Scotch lamb and specially selected pork while adding there could be room for development to ringfence levy payments to QMS.
Keith Whyte, from the North East Scotland Agricultural Advisory Group, said farmers and growers wanted to see ‘more confidence' in how their levy monies were being spent and proposed QMS should accompany any increase with a future plan for ‘sustained market growth'.
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Neil Wilson, executive director at The Institute of Auctioneers and Appraisers in Scotland, indicated a ‘failure' to consider an increased levy rate would leave Scotland ‘well behind other parts of the UK' but suggested QMS must share information in the red meat sector to maintain ‘wider confidence' when margins are already tight.
Iain Fraser, executive director at ANM Group, said despite an ‘unweclome' increase in supply chain costs, the organisation would support a levy increase if QMS supported a ‘meaningful and targeted' marketing campaign of Scotch meat products.
NFU Scotland Livestock and LFA policy adviser Lisa Hislop recognised the importance of the work done by QMS.
She added while they appreciated the need for QMS to be ‘sufficiently funded', a levy increase needed to increase promotional activity.
NFUS has also stated it would broadly support an increase in the statutory levy paid by cereal and oilseed growers to AHDB, with significant caveats attached relating to promotion, communication, research and the monitor farm programme in Scotland.
QMS said a levy increase would be vital in ensuring iconic Scotch brands thrive while working to drive ‘productivity and profitability' in Scotland and abroad with a sufficiently-funded sector-specific body essential in delivering its aims to 'future proof the industry'.
