Following the launch by Hybu Cig Cymru of a consultation paper on increasing red meat levies in Wales, the Farmers' Union of Wales is consulting its county branches on the proposed increases.
The first levy increase in a decade, if approved, would see farmers and processors paying an extra 16p for sheep, £1.10 for cattle and 25p for pigs entering the human food chain.
Responding to the consultation's launch, Aeron Prysor Jones, chairman of the FUW's livestock, wool and marts committee said: "The union's hill farming and livestock committees were recently given a presentation by HCC's chief executive, Gwyn Howells, about the work of HCC and the proposed increase.
"HCC undertakes a great deal of important research and promotion work which many farmers are unaware of. The reduction in livestock numbers which has occurred over the past years, coupled with other factors, has led to a significant drop in HCC's funds, and this has threatened much of that work.
"The industry now needs to carefully consider the implications of maintaining the status quo or supporting a rise in levy, and the union will respond to the proposals reflecting our members views."
Mr Jones also expressed his major concerns regarding the implication of falling livestock numbers.
"During HCC's presentation, members expressed major concerns over the fall in Welsh livestock numbers, and that the new Glastir scheme will accelerate this, further reducing the money available for HCC to undertake its functions.
"This is an outrageous situation, given that our major competitors such as the Irish will continue to receive significant LFA payments which aid production."