AHDB has confirmed it will focus its pork levy spend on exports, marketing and the industry’s reputation over the next five years.
It has also announced some of the areas where reduced levy funding will no longer be spent. Current AHDB initiatives that will no longer be funded include, as announced on Friday, the Pig Health Scheme, the Real Welfare programmes and the employment tool Pig Pro.
AHDB has today announced five-year plans, from 2022-2027, for its four remaining sectors – Beef & Lamb, Cereals & Oilseeds, Dairy and Pork. Levy payers are having the opportunity to question AHDB staff and sector council members about the plans during the online Delivering the Future of Farming online event, which can be viewed HERE. The pork event will take place at 4pm.
The full pork plan is now available to read on the AHDB website.
For Pork, AHDB’s work will be prioritised on the following:
- Exports, with a focus on identifying lucrative markets and optimising access for all cuts
- Marketing, with the aim of inspiring shoppers to choose pork for both home cooking and eating out
- Reputation, including vital aspects of AHDB’s work on:
- Education
- Animal health and welfare
- The environment
- Data and evidence.
AHDB is expecting a reduced funding pot from next year, from around £10m to £8m, mainly on the back of a reduction in levy due to industry contraction, but also a change in AHDB’s VAT status. The strategy reveals that the levy will be divided between the three priority areas, with marketing allocated 40%, exports 33% and reputation 27%.
This work has been shaped by the responses provided to the sector councils through AHDB’s Shape the Future campaign, which gave levy payers the chance to say what work should be carried out by AHDB on their behalf. Sector councils have since been meeting during the summer and autumn to make funding decisions based on that feedback.
The export work will continue to strive to identify lucrative markets, then work with governments and industry to achieve trading and veterinary requirements in new markets such as Vietnam. It will also look to optimise access for all cuts. For example, while whole muscle can be exported to Mexico, extending that to include offal would give even greater benefit.
The focus on marketing comes against the backdrop of ongoing debate over the restrictions on direct use of ‘British’ marketing in AHDB’s pork campaigns, including the current Feed the Family for Less campaign. You can read more about that HERE.
The reputational work will include a strong focus on education, including working in collaboration with the British Nutrition Foundation, providing material for schools and healthy eating week, and funding Ladies in Pigs. It will also include funding for randomised isotope testing to deter attempts to mislabel imported pig meats as British.
What is not being funded?
The sector council says it has acted on clear messages from levy payers to amplify our work on marketing, exports and reputation (including educating younger consumers, which will be underpinned by a foundation of aligned ‘pre-farmgate work’.
Prioritising this work, combined with a reduction in total income, means that some work must be reduced or stopped.
Given the relatively low score for environmental work – and knowing that others in the industry are involved in this area – we have decided not to increase funding for this work for now. However, we know this subject is of high importance to consumers. So, we are committed to maintaining a conversation with you, to ensure that the environment stays on the agenda and the sector stays on the front foot.
The strategy reveals that, while much of the important work to improve animal health and welfare is important is retained, the council has directed AHDB to discontinue the Pig Health Scheme and Real Welfare programmes unless alternative funding can be rapidly established.
The work around people in agriculture received the lowest scores in the Shape the Future vote. The council has therefore directed AHDB to carry out work around labour supply only if it relates to training that can uniquely be facilitated by the levy, for example, welfare training that forms part of the Red Tractor standards.
While PigPro has been a valuable asset there are now alternatives – so, after a period of transition, this work will be stopped, the strategy reveals.
Levy value
AHDB pork sector council chair Mike Sheldon said: “It’s been a brutal time for the pork sector, with the combination of Brexit and Covid creating a perfect storm, followed by hugely inflated costs of production resulting from the war in Ukraine. Supporting levy payers through these unprecedented times is more crucial than ever.
“Despite these daunting challenges, we can take great pride in England’s pork industry. With producers and processors operating to exceptional standards, British pork is preferred by most UK retailers, and there is demand from almost 100 other countries too.
“With such strong demand comes strong competition to supply. It’s never been more important to act together – and that is where your levy comes in.
“It is vital for the levy to deliver the very best value. In May 2022, producers and processors representing over half of all pigs farmed and three-quarters of those processed, told us how they wanted their levy spent via AHDB’s Shape the Future vote. This turnout was an absolute credit to an industry that was under enormous strain at the time. It is symptomatic of the true grit, hope and determination that we need for the future.
In the Shape the Future vote, you gave clear messages that your sector council has taken on board to direct the work of AHDB over the next five years.
“As we all know, we will need to show agility during these turbulent times. The Pork Sector Council is your ever-present voice within AHDB, and we want to hear your views. All the ways you can contact the sector council and the AHDB team are at the end of the sector plan main page. We look forward to hearing from you.”
AHDB’s CEO Tim Rycroft said: “This is an important milestone in our progress towards delivering our promise to put levy payers at the heart of all we do.
“The outcome of the last few months allows us to have a strong understanding of what our farmers and processors believe will benefit them most in terms of the work we do.
“The decisions that have been taken by our sector councils also take into consideration added financial pressures faced by all four sectors, in this difficult economic climate.”