AHDB NEWS RELEASE
Friday 19 November 2010
AHDB CONSULTS ON STRATEGIC PLAN
The Agriculture and Horticulture Development Board (AHDB) has today(FRI) launched a six week consultation with industry stakeholders and trade associations on its Corporate Business Plan 2011-14.
The consultation runs from 19 November 2010 to 6 January 2011 and includes an AHDB Board recommendation to increase the AHDB levy across three industry sectors: potatoes in Great Britain; beef and lamb in England; and cereals and oilseeds in the United Kingdom.
Some of the proposed core strategies contained in the AHDB Plan include:
· To undertake targeted R&D and efficient knowledge transfer to improve levy payer technical and business efficiency to reduce costs, increase yields, maintain/improve quality and optimise use of inputs
· To help levy payers produce in an environmental, social and economically sustainable way focusing on water, soils, fertilisers, pesticides and waste
· To give levy payers access to unbiased, high-quality market information
· To help defend the industry from unjustified criticism
· To undertake export market development to help underpin domestic prices
· To inspire and inform consumers
· To raise awareness of food and where it comes from among school children
· To deliver demonstrable AHDB operational cost and efficiency improvements
The work in the Plan is funded by statutory levies (parafiscal tax) paid by farmers and growers and others in the supply chain. These levy rates must be approved annually by Defra and Devolved Administration ministers.
The AHDB Board will consider the consultation responses at its meeting on 24 January before submitting its final Corporate Business Plan, including recommended levy rates, to UK Ministers.
AHDB Chief Executive Tom Taylor said: “The decision to retain AHDB under the recent Government review of Arms Length Bodies underlines the pivotal role we perform in helping to improve the efficiency and competitiveness of levy payer businesses.
“I am delighted to say that the benefits of the establishment of AHDB are coming through and for the first time since we were formed we are now forecasting a small operational surplus at the end of 2010/11.
“Where the Board are recommending levy increases the primary driver is the need to deliver specific front-line sector activities”.
The English beef and lamb levy increase is intended to raise an additional £2 million to be invested by EBLEX in boosting exports and helping to showcase the benefits of red meat. The current financial resources are not adequate to capitalise on these opportunities while continuing to deliver the existing outputs. The ultimate goal of this additional work is to help the industry achieve a more sustainable price for beef and lamb producers in England. The proposed increase for 2011/12 is one of 18%, which if agreed would result in the levy being set at £4.05/head for cattle producers, £1.35/head for cattle slaughterers, 60 pence/head for sheep producers, 20 pence/head for sheep slaughterers. (Readers can find the full business case for the proposed English beef and lamb levy increase on the consultation area of the AHDB website at http://www.ahdb.org.uk/publications/consultation.aspx).
The UK cereals and oilseeds levy increase will be invested in eight strategic areas of activity, with a focus on business improvement and delivering industry priorities arising out of HGCA’s recent R&D strategy review. It is proposed the 2011/12 levy rate be raised by 15% and would be applied from July 1, 2011.On a per tonne basis this would mean a 46p rate for cereal growers, 75p for oilseed growers, 3.8p for dealers, 4.6p for feed processors and 9.5p for other processors. This proposed increase would raise an additional £1.5million (Readers can find the full business case for the proposed cereals and oilseeds levy increase on the consultation area of the AHDB website at http://www.ahdb.org.uk/publications/consultation.aspx).
The GB Potato levy increase is the second incremental increase which allows growth in levy-payer activities. In 2010 wide potato industry support was received for a three year programme of ‘little and often’ potato levy increases to maintain essential Potato Council service delivery demanded by growers and their industry customers to meet the challenges ahead. Prior to 2010 the GB Potato levy rate had remained unchanged for 8 years. This recommended increase of 3% for 2011/12 would result in area levy being set at £41.38/ha for producers who grow 3 ha or more and 18.04p/tonne for purchasers (those purchasing over 1000 tonnes/yr). This proposed increase would raise an additional £180,000. (readers can find the business case for the proposed GB potato levy increase on the consultation area of the AHDB website at http://www.ahdb.org.uk/publications/consultation.aspx).
The levy rates for the other three AHDB sectors (milk and horticulture in Great Britain and pigs in England) are recommended to remain unchanged from the 2010/11 rates.
Notes
1. The levy rates for each year are proposed by AHDB’s six sector boards when they assess what will be needed to fund their recommended strategic plans. The AHDB Board considers these recommendations and publishes its proposals in a draft AHDB Corporate Business Plan on which the industry is consulted. Following the consultation process the AHDB Board considers the responses and puts forward its final recommendations to Defra and devolved administration ministers for approval. This process is completed
2. The draft AHDB Corporate Business Plan for 2011-2014 is published on the consultation area of its website at http://www.ahdb.org.uk/publications/consultation.aspx. Consultation responses should be sent to or by post to: Head of Communications, AHDB, Stoneleigh Park, Kenilworth, Warwickshire, CV8 2TL
3. The Agriculture and Horticulture Development Board is an independent, evidence-based organisation which plays a pivotal role in improving UK farm business efficiency and competitiveness. It is funded by farmers, growers and others in the supply chain through statutory levies and undertakes research and development and farm-level knowledge transfer activity. AHDB also provides essential market information to improve supply chain transparency, delivers marketing promotion activities to help stimulate demand and also works to maintain and develop export markets. (Further information on AHDB is available at www.ahdb.org.uk)
For media enquiries contact the following
James Wilde, EBLEX (beef and lamb levy increase) T: 0247 669 2051 E:
Caroline Slay, HGCA (cereals + oilseeds levy increase) T: 0247 669 2051 E:
Heather Briggs Mistral PR (potato levy increase) T: 01235 433 077 E:
or
AHDB Corporate: Guy Attenborough T: 0247 669 2051 E:
ENDS