Levy increase proposals published by AHDB sector councils

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.

The proposals come 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.

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 Thursday, 9^th November 2023.

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. The proposed levy rates are as follows:

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

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

Pork (levy rate last set in 1996)

Pig producer – £0.85 to £1.02
Pig processor – £0.20 to £0.24

AHDB chair Nicholas Saphir said while there is never a right time for such proposals, with the board’s spending power drastically reduced and inflation alone eroding the value of levy by around 40%, the decision could not be further delayed.

“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,” he said.

“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.”

QMS calls for levy increase to fund ‘vital work’

Proposals to increase levy have also been submitted by Quality Meat Scotland (QMS), the public body responsible for promoting the PGI labelled Scotch Beef and Scotch Lamb brands in the UK and abroad, as well as Scottish pork products under the Specially Selected Pork logo.

Commenting on the proposals, QMS chair Kate Rowell said: “QMS has not requested a levy increase since 2010, and we want to remain fit for the future of Scotland’s iconic Scotch brands, promotional work and market development.

“With this in mind, as we announced at the Royal Highland Show, we plan to hold industry workshops throughout Scotland during November and December, to discuss the delivery of our five-year strategy and, as agreed by the QMS board, a proposed levy increase to fund this vital work.”

To maintain good value for money, QMS will propose a new mechanism for setting the levy from Spring 2024, which will involve a small increase to fees each year to keep pace with inflation, Ms Rowell explained.

“This mechanism will be reviewed at the end of the five years, to ensure it remains fit for purpose,” she added.

Levy payers can find out more about the details of the proposals by visiting www.ahdb.org.uk.