AHDB makes formal recommendation to Ministers over 20% pork levy rise

AHDB has formally recommended a 20% increase in the pork levy to Ministers.

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. A decision is expected in the first quarter of 2024.

The pork levy rate was last set in 1996. If approved by Ministers, the increases will see the overall rate 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 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, including a livestream event, after its four sector councils published proposals for levy hikes in October.  

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.”