AHDB Starts Reducing its Horticulture and Potato Operations

In the wake of unfavorable votes by its own levy-payers, the AHDB has announced that it is winding down its 'significant activities' on behalf of the horticulture and potatoes sectors. Recent ballots from producers in the two sectors came out strongly against continuing to fund AHDB activities via a statutory levy. However what happens next depends on how the Agri-Ministers in England, Scotland and Wales decide to act upon those votes.

Pending those decisions, AHDB is putting some of its horticulture and potato work on ice, stopping programs of work that could be restarted in the future by grower associations, individual growers or others in the supply chain. This includes work on export market access and international trade, consumer marketing campaigns and market pricing and insight information.

AHDB said it would continue to deliver limited emergency work on pests and diseases, including the Extension of Authorization for Minor Uses and some contracted research work, as thus would be more difficult to restart and would be detrimental to the industry to stop whilst a managed transition or a different funding mechanism is considered.

Already contracted research work in horticulture is planned to be funded through to completion and findings made available to growers.

AHDB's interim CEO Ken Boyns said that the ‘responsible’ thing to do while waiting for Ministers to decide on the future of the horticulture and potato levies was to minimize expenditure. In line with AHDB’s legal obligations, levy return forms will be issued by post and email over the coming fortnight, but invoices will not be issued until Ministers have made a decision on levy rates.

Boyns urged levy payers to be patient in this period of transition: “We are taking a responsible approach in winding-down our work programs for the horticulture and potato sectors. In addition we have to recognize operational liabilities associated with contracts, people and assets. This means that some level of levy will be needed in 2021 to supplement sector reserves to cover these costs as we manage the change.

“Additionally, AHDB is legally obliged to collect a levy until such time as parliament amends the legislation. However, at this point we are asking for the data to be provided through the levy return process. Invoices will not be issued until we have Ministerial decisions," he stressed. “I would also hope that even those who voted against continuation would understand that it will take a little time to make the changes that we need to make.”

AHDB is expected to cut up to 140 jobs as it winds down horticulture and potato operations.