Wider industry perspective needed on new levy structure, AIC tells Defra

AIC is pressing Defra to reconsider its decision to ignore the wider agricultural industry in the formation of the Strategic Steering Group, set up to allow principal stakeholders to contribute to the implementation of the levy board restructure announced by Defra at the end of June.

“If we take HGCA as an example, some 15% of its levy income is generated from the wider industry, principally merchants and processors,” said David Caffall, AIC Chief Executive. “Company representatives also play an important role in the work of the levy boards through presence on Committees and working groups.

“Certainly from AIC’s position, we believe our members make an important contribution to ensure that the work HGCA undertakes is on behalf of the whole cereal industry. Our members have been keen to continue that role and remain levy contributors under the new structure.

“The decision to establish a strategic group with no representation outside the farming unions, CLA and TFA means Defra is intentionally turning its back on expertise that exists within other levy board stakeholders. Importantly, such stakeholders are best placed to give a wider industry and market perspective and ensure a new levy structure is created which is appropriate to both the challenges and opportunities open to UK agriculture in the future,” argues Mr Caffall.

“The response from Defra to date seems to place administrative concerns, such as the size of the group, above the aim of delivering the right result for the industry. We believe we have to challenge that and press for the group to be more representative of the wider industry,” concludes Mr Caffall.