The four AHDB Sector Councils have all proposed levy rises
AHDB has proposed raising levy rates across its four sectors from the start of the next financial year, it has been revealed.
The Sector Councils representing Beef and Lamb, Cereals and Oilseeds, Dairy and Pork said they have opted to increase prices in response to levy payers' requests to deliver more key services. These include marketing and exports for the livestock and dairy sectors, as well as more independent research for the remaining arable sector.
AHDB said the move had come at a time when the body's spending power has been greatly reduced by rising costs, which have been particularly affected by the increase in inflation.
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 November 9.
As @TheAHDB announce a proposal to increase levy rates, we want to hear from you. Would you back the levy rise? #AHDB #farmbusiness #UKfarming
— Farmers Guardian (@FarmersGuardian) October 4, 2023
The prices, many of which have remained unchanged for more than a decade, could be introduced from April 2024 and will see cattle producers paying £4.05 to £5.06/head of cattle; a slaughterer/exporter being charged £1.69 from £1.35/head of cattle. Sheep producers will see an increase of 15 per head while, pig producers will see a rise from £0.85 to £1.02 - a price that has been in place since 1996. Cereal growers can expect to pay 58.00p/tonne as opposed to 46p/t. For OSR, the rate moves to 94p/tonne.
See also: AHDB downsizes to benefit levy payers
AHDB chair Nicholas Saphir said he was aware the timing of the increase may not be popular but the message from levy payers had been clear that services provided by AHDB were vital.
"This is an unprecedented time for our industry, with inflation alone eroding the value of the levy by around 40 per cent. 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."
See also: AHDB levy increases must deliver for farmers
AHDB Beef and Lamb Sector Council chair Colin Bateman said the move followed last year's Shape the Future vote during which members had asked the levy scheme to do more.
"We are seeking access to grow export markets, investigating increasing the frequency of our marketing campaigns to maintain the momentum on shifting consumers' attitudes to red meat and doubling our spend on education work championing beef and lamb," Mr Bateman explained.
"If a levy increase is supported, we can continue to address the issues that levy payers raise, and focus on bringing more value to those priority areas."
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 has undergone some significant shifts over the past couple of years after the horticulture and potato sectors voted to cut ties with it in 2021. The body has also moved premises in a bid to streamline finances and has seen the arrival and departure of a chief executive - Tim Rycroft - who is stepping down just two years into its five-year strategic rethink. A successor has yet to be appointed.
