Proposals for increasing levy rates applied to farmers, growers and others in the supply chain for the financial year 2024/25 have been published by the Agriculture and Horticulture Development Board’s (AHDB) sector councils.
The purpose of increasing rates is to meet the request from levy payers to deliver more key services, including marketing and exports for beef and lamb, dairy and pork sectors and more independent research for cereals and oilseeds.
Levy payers are now being given the opportunity to ask questions about the proposals over the coming weeks including during AHDB’s Funding Your Future livestream event on Thursday November 9.
Sector councils will make a final recommendation to the AHDB Board, which will put the proposals to Government ministers and devolved administrations later this year.
The proposed levy rates are as follows:
Beef and Lamb (levy rate last set in 2011)
Cattle (excluding calves)
Producer – £4.05 to £5.06/head of cattle
Slaughterer/Exporter – £1.35 to £1.69/head
Calves
Producer – £0.08 to £0.10/head of cattle
Slaughterer/Exporter – £0.08 to £0.10/head
Lamb
Producer – £0.60 to £0.75/head of sheep
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
Pork (levy rate last set in 1996)
Pig producer – £0.85 to £1.02
Pig processor – £0.20 to £0.24
NFU Scotland (NFUS) vice president Alasdair Macnab said the proposals have implications for all those who grow cereals and oilseeds in Scotland as well as Scottish dairy farmers.
He said: “NFUS has met with AHDB to discuss the proposals. AHDB attended the recent meeting of NFUS’ milk committee, and the levy body organisation has been invited to attend the next meeting of NFUS’ combinable crops committee.
“These discussions are always useful in identifying how precious levy funds are currently used and what benefits levy payers may want the AHDB to deliver in the future.
“Ultimately, it is for NFUS’ membership to study the proposals and decide if we support the levy increases or not and that consultation process is now underway.”
Commenting on the timing of the proposals, AHDB chair Nicholas Saphir said: “This is an unprecedented time for our industry, with inflation alone eroding the value of the levy by around 40%. There is never a perfect time for such proposals, however it must be noted that it has been at least 12 years since a levy rate was last increased.
“The sector councils are right to explore the option of increasing the current rates but by taking a proportionate approach that takes into account the impact of the current economic climate on farmers, producers and processors. Therefore, I do recommend that you fully support the proposed increases.”
Levy payers can find out more about the details of the proposals by visiting www.ahdb.org.uk
