AHDB agrees to reforms to give levy payers more influence

AHDB has announced a series of 'key reforms', including a regular levy payer ballot on the levy, intended to give levy payers a greater say on how their money is spent.

The levy body has today issued its response to the Government’s recommendations stemming from the Request for Views on AHDB, which contained some strong messages from 900 organisations and individuals that took part.

It has confirmed it will implement a new strategy and improve communication with levy payers on how their money is spent, including committing to a regular ballot on the AHDB levy and how it is spent.

In the Request for Views, there was strong support, 69%, for a ballot of levy payers every five years over whether a levy in each sector should continue.

The timings and format of any ballot will need to be worked out in detail with Defra, and the Scottish, Welsh and Northern Irish Governments before being incorporated into the statutory legislation covering AHDB.

There will be a review of AHDB’s board and committee structure, which has been in place since the organisation was founded in 2008. An independent review of governance has already been put in place and will produce recommendations for change by the end of 2020.

There will also be a review of the levy calculations for potatoes and horticulture. 

AHDB has announced five commitment to come out of the Request for Views exercise:

• We will seek your views on a new strategy this Autumn and communicate regularly on how your levy has been spent and the benefits
• We will hold a ballot on the levies and how they are spent
• We will work with growers to design a modern levy system
• We will focus on farm performance and market development at home and overseas, driven by independent evidence
• We are currently reviewing our board and committee set-up, with recommendations due by the end of the year.

AHDB Chair Nicholas Saphir said: “We have listened carefully to the views expressed by levy payers in response to the Government-led Request for Views, and we are now committed to some key reforms to ensure we are fit for purpose in the changing times British agriculture is facing.

“As a new chair, I felt it was essential that we took time to consider fully the feedback from the exercise and its implications, and make clear commitments on how we will move forward, as well as ensuring this work is aligned to the new strategy that is being developed.”

Mr Saphir, who was appointed in April 2020, underlined the importance of AHDB’s new five-year strategy, which is being published for feedback this autumn. This will focus in two key areas of market development and farm performance.

Request for Views

More than 900 people responded to a call for views on AHDB, delivering a mixed verdict on its performance.

Overall, 43% of respondents had a positive view of AHDB, versus 36%, who had a negative view. But only 24% said the AHDB board’s served levy payers well, compared with 47% who said they didn’t.

While most respondents (64%) wanted the levy to stay, they want a greater say in how their money is spent, with strong support, 69%, for a ballot of levy payers every five years over whether a levy in each sector should continue.

There was strong support for an overhaul of AHDB’s current structures and a reform of its governance so that it is operating in a more modern and effective way, as well improved communication with levy payers.

In our response, the NPA said members were concerned that the pork sector board had limited influence over AHDB. It criticised the structure ‘requiring every decision to go through multiple approvals from senior management’.

Most respondents felt AHDB board is currently ‘out of touch with levy payers’ and many felt it needs to be ‘more transparent and accountable’, with calls for better communication with levy payers.

There was strong support (72% in each case) for marketing and promoting efficiency and productivity to continue as AHDB priorities, with good support, 59%, for a focus on developing markets and exports.