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AHDB Pork

Opinion: Strengthening British pork’s future – a focus on value and resilience

Glen NimmoBy Glen NimmoApril 5, 20254 Mins Read
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In less than a month, I will have completed my first year as chairman of AHDB’s Pork Sector Council and member of AHDB’s board.

It has been an enjoyable year, observing industry changes, meeting talented people, and helping the sector council guide AHDB’s impact for levy payers.

Industry sentiment has evolved over that period. A year ago, few producers pursued growth projects, but instead chose to replenish reserves depleted during the crisis. Now, more of them are discussing capital investment plans.

However, progress remains limited by financial constraints, legislative uncertainty, slow planning processes and low confidence in future returns. This is partly due to the price disparity between British and European pigs.

British pork’s premium pricing should signal a valuable product, but doubts about sustaining this gap hinder investment.

Consolidation

Consolidation between processors and producers continues rapidly. The market’s future state is unclear, but further corporate activity seems likely.

Against this backdrop, the Pork Sector Council recently confirmed its budget for the upcoming fiscal year.

Over the past year, AHDB has delivered strong returns for levy payers. Independent analysis confirmed a 10-to-1 return on retail sales from our Love Pork campaign.

Our export team helped open the Vietnamese market and assisted in relicensing an abattoir for the Chinese market. All this goes towards protecting British pork’s reputation while strengthening resilience against health and welfare risks.

The council has chosen to build on these successes. Over the past four months, we have developed a plan that enhances activity in key areas while ensuring other critical work is fully funded. Three investments are particularly notable.

First, the British pork advertising programme has been refreshed with vibrant new assets to prompt consumer reappraisal of pork.

TV advertising has a proven effect, which is why we’ve doubled last year’s activity. We’ll also facilitate coordination between processors and retailers during these campaigns.

Second, China remains crucial for maximising carcase value by selling ‘fifth-quarter’ products at better prices than are achievable domestically.

Building long-term relationships with Chinese authorities is vital, and AHDB’s in-country presence has supported this for years. With recent geopolitical shifts creating both risks and opportunities, the recent relicensing of two UK pork plants reflects an improving political climate.

Consequently, the sector council will increase investment in AHDB’s China presence with additional resources on the ground.

Third, attracting and retaining labour is a consistent worry among levy payers. While individual staffing arrangements fall outside AHDB’s remit, our stockpersons training suite demonstrates how we can enhance employee skills sector-wide.

AHDB will now expand and upgrade its training resources to further support levy payers.

Industry resilience

This investment will sit alongside ongoing efforts to strengthen industry resilience.

We will continue rolling out resources to prepare for potential African swine fever outbreaks, providing evidence on legislative impacts and investing in accurate sustainability measurement and efficient farm data capture.

Importantly, this will be underpinned by AHDB’s renewed focus on improving internal efficiencies to maximise frontline investment. Since Graham Wilkinson’s appointment as CEO, AHDB has undergone a cultural shift, with a clear strategic goal of being the key that unlocks the success of British agriculture.

The leadership team has made measurable efficiency commitments to the sector council, and we will hold them accountable.

Despite the challenges noted earlier, there are reasons for optimism about the industry’s future. Rising red meat prices have improved pork’s value credentials as a shopping basket staple.

Innovation and premiumisation of pork products on retailer shelves are enhancing perceptions of pork at mealtimes. Across the supply chain, efforts to reduce profit volatility should encourage future investment in growth and efficiency.

To reiterate my overriding message: AHDB can only maximise returns for levy payers if we are embedded in industry plans. To achieve that, we need to hear from you – our doors remain open.

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Glen Nimmo

Glen Nimmo is AHDB Pork Sector Council chairman

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