Agriculture board reform plans to save millions

Reform of the Agriculture and Horticulture Development Board (AHDB), which was established last April to replace five levy-paying bodies, has entered its second “consolidation” stage, according to its chairman John Bridge.

As it begins the move to its new home at Stoneleigh Park in Warwickshire, which will be completed over the next two years, the AHDB plans to save £3.5M through the amalgamation of ‘back-office’ and other central services, such as market intelligence.

Around 22 posts are expected to be lost across the organisation, although Bridge stressed: “Every single person who wants to move will have a job.”

The way the AHDB conducts and delivers research and development (R&D) - which constitutes around one-third of its total levy income (£15M-£20M) - is also being reviewed as part of this work. While there are some arguments for retaining sector-specific R&D, Bridge believes some activity is common to all sectors covered, so there is room for savings here too.

“We need to tease out areas of commonality,” he said. “R&D is a very, very critical issue for us so we are keen to get some quick focus on that.” Nutrition research will be high on the agenda, he added.

“It has been agreed in principle to create more co-ordinated and better focused research and development and marketing activities,” said Bridge. “We are currently consulting with all staff on that design.”

AHDB formally came into being on April 1 replacing the British Potato Council, the Home Grown Cereals Authority (HGCA), the Horticultural Development Council (HDC), the Milk Development Council and the Meat & Livestock Commission (MLC).

AHDB now has six sector companies, which report to its main board: HDC, covering horticulture; EBLEX for beef and lamb; DairyCo for milk; HGCA for cereals and oilseeds; BPEX for pigs; the Potato Council; and MLC Services.

Existing research contracts include a project commissioned by HGCA and DairyCo in conjunction with Chatham House and involving Cardiff, City and Oxford Universities on ‘Future food supply scenarios’. This project is due to report back in October.