AHDB to review all pork services
AHDB is reviewing all its services for pork levy payers, as it faces up to a future with a reduced levy and undergoes a restructure following the recent Shape the Future vote.
The pork levy, which totalled around £9m in 2021/22, is under pressure two fronts. HMRC informed AHDB earlier this year of a change to its VAT status, meaning it can no longer recover VAT on goods and services paid for by the levy.
While AHDB continues to press its case, the change came into force on April 1, and is expected cost the levy body around £4m across its four remaining sectors, reducing spending capacity by around 9%.
In addition, AHDB is budgeting for a reduction in its 2022/23 pork levy of up to 15%, in light of the ongoing contraction of the national pig herd, according to pork sector chairman Mike Sheldon. “That is substantial, although there are no guarantees the reduction will be that big,” he said.
It means the budget will not be big enough to cover the pork sector services AHDB currently provides, with some probably having to go altogether and others receiving less funding.
“Everything we do is under scrutiny” Mr Sheldon added. “There are no exceptions. We will be considering what levy payers think of a particular activity, what value we generate from it and whether it something no-one else can do.”
Alistair Driver/ Pig World
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