Establishment of AHDB has meant greater value for potato industry levy-payers, claims Potato Council

Potato Council performance figures finalised this week, demonstrate how becoming part of the Agriculture and Horticulture Development Board (AHDB) and driving for greater efficiency has resulted in levy-payers benefiting to the tune of nearly 500,000 /year.

According to Potato Council director Dr Rob Clayton, an extra 480,000 is being spent in 2010-11 on the front line of the potato industry on R&D, knowledge exchange, corporate affairs and marketing.

Since 2007-08 we have cut back-office costs by 30 per cent and have moved our focus firmly to the front line of the industry where we can benefit growers, purchasers, processors and the food service sector, he says.

Coinciding with the launch of the consultation on the AHDB 2011-2014 corporate business plan and the Potato Council sector plan, the board of the Potato Council renewed its pledge to direct levy and other funding towards potato growing, processing, corporate affairs and marketing.

Last year we proposed a three per cent levy increase each year, for three years, adopting the little and often approach favoured by levy-payers. Feedback had suggested that having regular small annual levy increases was the preferable approach, explains Dr Clayton. The three per cent increase proposed for 2011-12 would result in a grower levy of 41.38/ha and a purchaser levy of 18.04p/tonne. For the majority of levy payers that are growers, this proposed increase amounts to 2.7p/tonne based on an average yield.

Dr Clayton is keen to point out that if inflationary increases had been applied to the levy over the eight years up to 2010-11, it would have been 27 per cent higher in 2010 than the levy increase proposed.

A detailed plan for levy-payers with a comprehensive explanation of proposals for the next three years has been published on the Potato Council website. The AHDB is consulting the potato industry on the recommendations made by the Potato Council Board.

As part of the updated plan, Potato Council is driving forward an engagement programme[1] to demonstrate the organisations commitment to growers and purchasers both large and small.

Easy access to us is vital to building our relationship with levy-payers as well as offering added value in everything we do, so in a break with tradition entry will be free at more of our bigger events like BP2011.

According to a recent independent survey[2], over half of levy-payers said that Potato Council is spending funds wisely, with the proportions allocated to the different areas of activity within the sector being about right, says Dr Clayton.

We are pledged to continue helping industry by spending 24 per cent of our income promoting and sustaining consumer demand for potatoes through retail and food service outlets.

Potato Council marketing activities will continue to focus on the benefits of potatoes and on encouraging younger people to proactively choose them as part of their regular meal solution. Work has begun to promote the potatos nutritional benefits and food security credentials to consumers, stakeholders and policy-makers. This work will continue into the year to raise awareness about the importance of the potato.

Potato Councils campaign to increase demand for potatoes has produced more than 12 hours of TV and radio airtime and 6m-worth of positive press coverage in the last year. In addition, ten Potato Ambassadors have been fully trained to promote the benefits of potatoes to consumers and more than 1.25million school children have been involved in the Grow Your Own Potatoes scheme.

The crop production industrys needs are driven by optimising inputs and plant health, in addition to responding to new regulation, energy saving and soil, water and pesticide use. Our producers face ever-increasing challenges, which is why we are investing nearly 40 per cent of our funds in front-line R&D and knowledge transfer.

In the current year, 17 R&D projects have been completed and have been reported via 217 events and publications so far. Knowledge exchange is vital in diverse agricultural industries such as potatoes.

It is important that levy-payers benefit from the opportunities resulting from scientific work. To ensure the research being done is fit-for-purpose, Potato Council has improved its feedback system to ensure two-way communication between scientists and industry. This is assisting the research community to become more aware of end-user needs of R&D.

Furthermore, Potato Council will continue to work with the farming unions and other groups and associations to create the industry voice to meet and manage environmental and regulatory requirements and help raise the skills base, adds Dr Clayton.

Potato Council has refreshed its committees and appointed new members who will engage with levy-payers in all aspects of the potato business. Retirements from the Potato Council board in 2011 will create a couple of new vacancies for levy payers to take part in the strategic direction of the Council as board members and this will continue annually thereafter.

It is vital to have the appropriate people with the right skills in place to help us expand our engagement where it is most needed.

Not only has Potato Council honoured the pledges it made last year, we have made levy-payers money go further through efficiency savings. Potato Council has attracted match-funding through the development of trade sponsorships and partnerships to help us maximise delivery and impact of our messages. We recognise the challenges our industry faces, like plant health, that continue to mount in an environment where achieving match funding is becoming tougher. Our proposed increase in levy rate would put us on the front foot to meet these challenges. We plan to continue to nurture these joint ventures under the new corporate business plan.

• Potato Council is a division of Agriculture and Horticulture Development Board (AHDB). The address is: Potato Council, Agriculture and Horticulture Development Board, Stoneleigh Park, Kenilworth, Warwickshire CV8 2TL. AHDB Switchboard tel: 0247 669 2051.

• The AHDB is a Non?departmental Public Body and is funded from statutory levies that are generated from six different sectors of UK agriculture: beef and sheep (EBLEX England only); pigs (BPEX England only); dairy (DairyCo all of GB); cereals and oilseeds (HGCA all of UK); potatoes (PCL all of GB) and horticulture (HDC all of GB). Levy?derived income is approximately 50m per annum. Arrangements for devolved governments differ for arable crops (Northern Ireland) and the meat sector (Scotland and Wales). The poultry, pulses and sugar beet sectors (who raise a voluntary levy) also sit outside AHDB which therefore acts on behalf of about 75% of UK agricultural production. In addition to farmers and growers, revenue to AHDB is received from abattoirs, millers, maltsters and potato processors. AHDB is committed to delivering good value for money to all its levy-payers.

1.     Engagement programme. In May 2010 Potato Council concluded a major review of levy payer communications and contact undertaken during its transitional phase. The purpose was to take stock of all activity and identify any gaps in engagement to inform future strategy. The review entailed an analysis of all recorded contacts with Potato Council segmented by business type, business size, location and PCL staff responsibility. Further analysis included attendance at meetings etc. The analysis revealed gaps in engagement in the West, the South West, the Norfolk/Suffolk border and Fife. Consequently, meetings have been arranged and delivered in each of the identified target areas.

2.     Independent Telephone benchmark survey. Undertaken every two years to Chartered Institute of Marketing accredited standards by Dialogue Ltd based in Shrewsbury. This survey involves a random sample of 250 growers and includes questions relating to awareness of and satisfaction with Potato Council activity and services.