AHDB makes call to turn residual potato levy into £1.8m grant

The Agricultural Horticulture Development Board (AHDB) is recommending that government ministers allow its residual potato levy funds be used to support industry projects in the sector through a grant to GB Potatoes.

Industry leaders such as NFU Scotland, the British Potato Trade Association, the Fresh Potato Supplier Association and the Potato Processor’s Association have all sent letters of support.

AHDB holds around £1.8 million of potato reserves following the sale of its Sutton Bridge Experimental Unit, £400,000 of which needs to be set aside to cover any potential residual liabilities.

The grant is proposed to be tapered over three to five years, reducing each year as GB Potatoes increases its flow of voluntary industry funding.

If approved, it will comprise £1.372m over the first three years and a further £426,000 over years four and five.

Graham Wilkinson, AHDB chief executive, said grant funding would guarantee support in key areas of the industry needed over the next few years, meeting the AHDB board’s legal obligation to use levy funds to benefit the sector.

A total of seven projects are forward for proposal including looking at potato blight, aphid monitoring, reputational management and nutrient management.

Scott Walker, GB Potatoes chief executive, said recent years have witnessed a marked downturn in both seed and ware potato production due to escalating costs and the substantial risks undertaken by growers.

He said: “Our proposed initiatives are designed to confront industry obstacles, nurturing resilience and are for the benefit of the entire supply chain.

“To provide oversight, on project implementation, monitoring and evaluation, we will establish an industry advisory committee comprising industry stakeholders to work with GB Potatoes to ensure that all growers benefit from the residual levy funds.”

The next steps will be to submit a grant proposal and AHDB board recommendation to ministers for their consideration.

Our proposed initiatives are designed to confront industry obstacles

Potato industry leaders have backed the call.