AHDB has confirmed that it has recommended a 20% increase in the pork levy from April, 2024, alongside similar increases across its other three sectors.
The levy body said it had secured the support of major industry stakeholders to increase the levy in all four sectors it supports – pork, beef and lamb in England, dairy in Great Britain, and cereals and oilseeds in the UK.
An application for the increases has now been made to Ministers in Defra and the Devolved Administrations for approval.
If approved by Ministers, the increases will see the overall pork levy rate, which was last set in 1996, rise from £1.05p/pig to £1.26/pig. The producer and processor rates will be raised in line with current proportions, so the producer levy would increase from 85p to £1.02 and the processor levy would go up from 20p to 24p.
AHDB Pork Sector chair Mike Sheldon said the hike would raise about a further £1.5m, taking the total pork sector budget to around £8.6 million.
AHDB embarked on a round of engagement with levy payers through its Funding your Future campaign, after its four sector councils published proposals for levy hikes in October. Discussions with industry and levy payers have taken place widely and culminated in a livestream event where levy payers could ask their questions about the levy increase.
The proposals have now been put to Government Ministers and Devolved Administrations for them to make a decision, expected in the first quarter of 2024.
Will Jackson, divisional director for engagement, said: “Today, we have recommended to Ministers to approve levy increases in the four sectors we serve. We are delighted to be doing this with the support of so many industry stakeholders who recognise the value that AHDB demonstrates through the levy and want us to do more.
“The levy rate has not increased for over 20 years in some sectors and our spending power has greatly deteriorated over that time due to inflation and the loss of our VAT status. If a levy increase is approved, AHDB can continue to deliver the valuable things that levy payers have told us are important to them and increase our activities where levy payers have asked us to do more in order to meet their expectations.”
Other proposed levy increases:
Proposed levy rates recommended to Ministers
Beef and Lamb (levy rate last set in 2011)
- Cattle (excluding Calves) Calves
- Producer – £4.05 to £5.06/head of cattle Producer – £0.08 to £0.10/head of cattle
- Slaughterer/Exporter – £1.35 to £1.69/head of cattle Slaughterer/Exporter – £0.08 to £0.10/head
- Lamb producer – £0.60 to £0.75/head of sheep
- Lamb 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