Sector Councils representing beef and lamb, cereals and oilseeds, dairy and pork sectors have published proposals for increasing the Agriculture and Horticulture Development Board’s (AHDB’s) levy rates from the start of the 2024/25 financial year.
AHDB said that the purpose of increasing rates is to meet the request from levy payers to deliver more key services, including marketing and exports for the beef and lamb, dairy and pork sectors and more independent research for cereals and oilseeds. This comes at a time when AHDB’s spending power has been greatly reduced by rising costs, which have been particularly affected by the increase in inflation.
Sector councils will make a final recommendation to the AHDB board, which will put the proposals to Government Ministers and devolved administrations later this year.
Levy payers are being given the opportunity to ask questions about the proposals over the coming weeks, including during AHDB’s ‘Funding Your Future’ livestream event on 9th November 2023.
New rates proposed by the sector councils
Beef and lamb (levy rate last set in 2011)
Cattle (excluding calves)
Producer – £4.05 to £5.06/head of cattle
Slaughterer/exporter – £1.35 to £1.69/head
Calves
Producer – £0.08 to £0.10/head of cattle
Slaughterer/exporter – £0.08 to £0.10/head
Lamb
Producer – £0.60 to £0.75/head of sheep
Slaughterer/exporter – £0.20 to £0.25/head of sheep
Pork (levy rate last set in 1996)
Pig producer – £0.85 to £1.02
Pig processor – £0.20 to £0.24
Cereals and Oilseeds (levy rate last set in 2011)
Cereal grower – 46.00p/tonne to 58p/t
Cereal buyer – 3.80p/t to 4.80p/t
Cereal processor (human/industrial) – 9.50p/t to 12p/t
Cereal processor (feed) – 4.60p/t to 5.80p/t
Oilseeds – 75 p/t to 94 p/t
Dairy (set more than 20 years ago)
Dairy farmer – 0.06p/litre to 0.08p/l
Taking a proportionate approach
Commenting on the timing of the proposals, AHDB chair Nicholas Saphir said: “The message from levy payers through Shape the Future was clear, that key services provided by AHDB, such as independent research, the Strategic Farm networks, activity to identify new export markets as well as domestic marketing, are seen as vital to levy payers.
“This is an unprecedented time for our industry, with inflation alone eroding the value of the levy by around 40%. There is never a perfect time for such proposals, however it must be noted that it has been at least 12 years since a levy rate was last increased.
“The Sector Councils are right to explore the option of increasing the current rates but by taking a proportionate approach that takes into account the impact of the current economic climate on farmers, producers and processors. Therefore, I do recommend that you fully support the proposed increases.”
AHDB Cereals and Oilseeds Sector Council chair, Tom Clarke, said: “The Sector Council believes you need AHDB to do more and do it better. That means investing more.
“We need new solutions and more relevant advice to help farmers do better in changing times. That’s why we will invest at least £1m more per year into research, which will be directed by levy payers themselves.
“AHDB needs to step up to deliver more for farming but without greater levy payer investment we will have to cut back even existing services.”
AHDB must report back to levy payers on industry issues, says AIMS
The Association of Independent Meat Suppliers (AIMS) expressed its concerns about the increases in levy rates and the value that the levy delivers to its members’ businesses. Tony Goodger, membership communications lead at AIMS, said: “For our part we have concerns that staff at AHDB have for too long seen the restriction on ‘lobbying’ as a means of not fully engaging with officials on issues that are of concern to levy payers.
“We see lobbying as a political act whereas constructive conversations for the benefit of the industry is, we believe, not lobbying.”
Goodger went on to say that AIMS, to date, had seen “no evidence from AHDB promoting the full digitisation of export process and the need for the looming veterinary attestations issue to be addressed.”
He added: “Furthermore we’d also like AHDB to express the opinions of their levy payers through responses to Government consultations.
“If we are to lend our support to any levy increase it will be on the proviso that AHDB regularly report back to levy payers and their representative trade associations, such as AIMS, on how they have been addressing industry issues with officials.”
Goodger concluded that AIMS is not opposed to the levy, but “as with any spend in any business [its] members expect to see a good return on the money they pay.”
Levy payers can find out more about the details of the proposals by visiting www.ahdb.org.uk.
Sector Councils will be available to answer relevant questions via face-to-face meetings, email (info@ahdb.org.uk), social media and the Funding Your Future livestream event throughout the autumn. Further details of Funding Your Future, along a full schedule of activity, will be announced in October.
