QMS Levy Review Q&A

In 2024, after thorough consultation with industry stakeholders and QMS members, it was agreed to implement an annual levy increase in line with the Consumer Prices Index including Housing (CPIH). As a result, a 3.3% levy rate increase will take effect from 1 April 2025. This adjustment is vital to ensuring QMS remains financially sustainable, allowing us to continue supporting Scotland’s iconic Scotch brands, driving promotional efforts, and advancing market development both within the UK and internationally.

Why is QMS increasing the levy rate?
The levy increase aligns with the Consumer Prices Index including Housing (CPIH) index as announced last year. This ensures QMS’s financial model remains sustainable, supporting key activities such as marketing, market development, and maintaining Scotland's Scotch brands both domestically and internationally.

When will the levy increase take effect?
The levy increase will be applied from 1 April 2025.

2025/26 Rates

SpeciesPaid by Producer per HeadPaid by Slaughterer/Exporter per HeadTotal Levy per Head
Cattle4.641.446.08
Calves (up to 68kg)0.070.080.15
Sheep0.660.220.88
Pigs1.130.271.40

Why do you need this new levy mechanism?
A small, annual inflationary increase ensures that QMS can continue to compete in an increasingly tough world market. This gradual adjustment avoids the risk of a significant increase after several years, providing the necessary funds for marketing, promotion, and other vital initiatives. The mechanism will be reviewed at the end of five years to ensure it remains fit for purpose and continues to provide value for money.

Will the levy increase further?
We do not foresee the levy going up beyond the CPIH rate unless there are extreme market conditions or high inflation. The annual ‘brake’ will allow for adjustments based on these factors. The full review after five years will ensure the mechanism is still appropriate.

What are the benefits of the levy increase for the Scottish red meat sector?
The levy increase enables QMS to make significant progress in areas such as:

  • Marketing and reputation management
  • Livestock numbers modelling
  • Business development
  • Strategic projects on brand evolution, genetics, and eating quality

What actions has QMS taken in 2024/25?
Key actions included:

  • Revamping and launching new consumer marketing campaigns, including the successful "When You Know You Know" campaign
  • Leading a four-nation approach to livestock numbers modelling
  • Enhancing reputation management to promote red meat as part of a healthy diet to communities and decision makers
  • Implementing cost-saving measures and progressing strategic projects

We will soon start publishing quarterly impact reports to highlight the work we do on industry’s behalf throughout the year and will also summarise our full delivery and impact for 2024/25 in our Annual Review this summer.

What are QMS’s plans for 2025/26?
Plans include:

  • Continuing consumer marketing efforts with a focus on media reach
  • Supporting business development to identify key customers and markets at home and internationally
  • Prioritising livestock numbers modelling and engaging with policymakers and farmers
  • Expanding the ambassador programme and further developing reputation management
  • Testing an environmental data tool with businesses across the supply chain to improve understanding of agriculture’s net zero contribution
  • Focusing on business skills for livestock farmers through the Monitor Farm Scotland Programme

How will QMS continue to support businesses?
QMS will continue its business development programme, ensuring businesses are central to activities. The focus will be on building relationships with key customers and markets and addressing the specific needs of businesses in the sector.

How does QMS plan to support the livestock sector in the coming years?
QMS will continue its work on livestock numbers modelling, reputation management, and business development to support farmers and stakeholders. The goal is to help navigate emerging challenges and seize new opportunities for the sector.

What role does the levy play in Scotland’s red meat sector growth?
The levy is essential for funding initiatives that maintain and enhance the reputation of Scotland’s red meat brands, ensuring they remain competitive in both domestic and international markets. It supports key activities in marketing, market development, and other sector-wide initiatives that benefit all stakeholders.

I’m a farmer with dairy, arable, beef, and sheep. How can I opt out of paying the levy?
The levies paid to AHDB, QMS, and HCC (in Wales) are statutory and set by legislation, so there is no option to opt out. However, it may be useful to speak with a QMS or AHDB board or staff member, as they may offer opportunities for representation, advice, or resources that benefit your business.

How can I be confident QMS is delivering value for money?
QMS is committed to delivering value for money. The organisation focuses on clear targets and a transparent tracking and measuring impact process. QMS ensures its resources are used efficiently to make Scotland the choice for premium red meat.

How does QMS manage its costs and budget?
QMS is highly focused on budget management and cost control, particularly during times of rising costs and static levies. Despite challenges such as a shortfall due to inflation, QMS has successfully reduced overheads and prioritised activities. The strategy is focused on making the most significant impact with available resources, ensuring sustainable and efficient use of the levy.

Can’t you just do less of the ‘telling us how to farm’ activity and concentrate on actually selling what we produce?
A high proportion of levy money (75%) is spent on marketing and communications, at home and overseas, in order to drive sales of Scottish red meat.

About 25% is spent on industry development, which covers progressive technical issues such as genetics, eating quality, and sustainability, among others. It is critical that producers remain competitive in a global market, and our technical development focus is about seeking out, commissioning, and publicising research, ideas, and guidance that will help Scotland’s red meat producers become even more efficient and effective. Productivity and profitability – along with sector sustainability – drive everything we do from a supply chain technical perspective.

What will you do with the extra money?
It will ensure we can successfully deliver the five-year strategy. This will allow us to continue to represent Scotland’s iconic Scotch brands, maintain and increase important work to drive productivity and profitability, expand domestic and international promotional activity, and progress critical market development work. A sufficiently funded sector-specific body is crucial to delivering these aims and ensuring our industry’s future potential is not compromised.

Does QMS and its work really help – are we doing any better than our other GB competitors? And what would happen if we didn’t pay the levy?
Independent analysis in the Impact Review 2023 shows production and retail performance of Scottish beef, lamb, and pork have exceeded that of the rest of the UK over the reference period by £130m at production level and £124m at retail level.

The consultants add: “We believe that if levy payments were stopped and QMS was unable to carry out activities, we conclude that within five to eight years, the Scottish Red Meat sector would perform in line with the rest of the UK.”

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