Annual Review 2016/17

Transcription

1 Annual Review 2016/17

2 A review of activity carried out by AHDB Beef & Lamb during the 2016/17 financial year Contents Welcome 3 Our levy income 4 How the levy is spent 5 AHDB Beef & Lamb by numbers 6 Boost competitiveness and sustainability 8 Grow market opportunities 10 Strategy support 12 Operating income and expenditure 14 Areas of activity 15 2

3 Laura Ryan Sector Strategy Director AHDB Beef & Lamb Welcome Welcome to the AHDB Beef & Lamb Annual Review for 2016/17. The past year saw the AHDB Beef & Lamb sector board put a significant amount of work into rethinking how we can address the challenges posed by Brexit, falling consumption and the performance gap on farm in order to add the most value for our levy payers. The result of this activity is our Inspiring Success strategy, which we believe will help to deliver a bright future for the sector. The strategy maps out the long-term areas of focus required to meet the specific challenges faced by the industry, driven by the need for a more consistent product to meet changing consumer demands. This review gives an overview of AHDB Beef & Lamb activity in the 12 months to 31 March During this period, our functional teams continued to deliver against our existing strategic priorities, while working to equip the industry with valuable insight and analysis to inform business decisions in the aftermath of the Brexit vote. This will be an increasingly important part of our role moving forward as we work with farming enterprises and the supply chain to help them prepare for the future. Delivering for levy payers continues to be at the heart of everything we do. 3

4 Our levy income The AHDB Beef & Lamb levy is collected from English abattoirs at the point of slaughter. Beef and sheep producers are charged their portion of the levy by abattoir operators. The current levy rates are: per head Slaughterer/ Exporter Producer Total Cattle Calves Sheep Beef 46% Sheep 54% In the year to 31 March 2017, million was raised from the slaughter of cattle and sheep in England, a slight increase from the million raised during the previous year. Levy collection costs were 317,000 (compared with 293,000 in 2015/16) to give a net levy income of million ( million in 2015/16). The levy income raised from cattle was million (46 per cent of the total) and from sheep million (54 per cent). Last year, 53 per cent of the total net levy income was collected from cattle and 47 per cent from sheep. The levy was last increased in

5 How the levy is spent In 2016/17, AHDB s fundamental purpose was to equip levy payers with the information and tools to grow and become more competitive and sustainable. Within this aim, there were two priority areas of focus: Boost competitiveness and sustainability Grow market opportunities These priorities were underpinned by activity that supports these strategies. Key outcomes against each area during the 2016/17 financial year are detailed on the following pages, together with a summary of the services we have provided to the industry. 5

6 AHDB Beef & Lamb by numbers The amount of retail sales generated in the wider red meat roasting campaign for every 1 spent on the 2016 mini roast campaign 83% Percentage of producers who made a change in their on-farm management as a result of attending a Better Returns Programme (BRP) event and feel it has improved their financial returns 100 Value added to the beef carcase by adopting alternative butchery methods. Using seam butchery methods to adapt slow cooking and roasting cuts so they can be quick fried can add value and help the industry offset the decline of roast meals in the home 1,310 Number of press, radio and TV articles mentioning AHDB Beef & Lamb between April 2016 and March 2017

7 49% Year-on-year increase in the volume of beef exports to non-eu markets in This included good growth in offal exports to Côte d Ivoire, Guinea, Gabon and Liberia, where AHDB has led missions over the past couple of years 20.8m The total value of research projects we are involved in on behalf of the beef and lamb industry. This figure includes 5.1 million of levy spend and 15.7 million of co-funding from other organisations 6,000 The number of lambs recorded from birth to slaughter during the first two years of the RamCompare project 1.8m The number of page views of the markets section of our website beefandlamb.ahdb.org.uk 7

8 Boost competitiveness and sustainability This priority includes work to improve business and technical efficiency on farm, and activity to increase the competitiveness of English beef and lamb supply chains. Eradicating BVD from English cattle herds We worked with partners to launch a major industry-wide initiative that aims to eradicate the Bovine Viral Diarrhoea (BVD) virus from all cattle herds in England. The voluntary scheme is based on achieving the elimination of BVD through identification and removal of animals persistently infected with the virus. In the first year since its launch, more than 30,000 BVD test results have been uploaded to the national BVDFree database, which can be found online at Developing sheep industry advisers A new scheme was launched to offer continuous professional development to consultants and advisers in the sheep industry 8

9 who want to expand their knowledge. The Developing Sheep Expertise programme, which we have organised in conjunction with the British Institute of Agricultural Consultants, builds on the success of the Developing Beef Expertise scheme. The programme will produce a group of trained consultants and advisers who can deliver AHDB Beef & Lamb messages and help develop knowledge exchange resources. Improving competitiveness in the beef sector We launched a new 1.5 million project focusing on two key areas of beef production improving youngstock health and reducing losses due to poor health and disease, and improving efficiency in the use of feed and forage. The five-year Beef Knowledge Partnership will bring together research and industry collaborators to deliver focused, commercially relevant and innovative research, together with an intensive programme of knowledge exchange. Putting leading rams to the test More than 70 rams took part in the initial phase of the cross-industry RamCompare project, the UK s first commercial progeny test for terminal sire rams. Data on growth and carcase traits was collected from their lambs under commercial conditions and incorporated into genetic evaluations in order to produce new estimated breeding values (EBVs). RamCompare aims to provide commercial farmers with the ability, through these EBVs, to select rams producing progeny that are more likely to meet target market specifications. Phase two of the project is now under way, incorporating additional breeds and farms. 9

10 Grow market opportunities This priority includes activity to develop the market for quality-assured English beef and lamb at home and abroad. Mini roast halo Our 2016 mini roast campaign created an 18.6 million halo effect of incremental sales for beef, lamb or pork joints. The high-profile campaign, which reached 22 million households through television, press and digital activity, added 1.3 million in mini roast sales. As a result of marketing, PR and activity to develop closer relationships with processors, retailers also backed the initiative by bringing 28 new mini roast products to market over a two-year period. Raising the steaks Steaks are becoming more tender as the quality of English beef continues to improve, according to our 2016 retail survey. The latest findings show that the tenderness of sirloin steaks and beef roasting joints has increased noticeably over the last five years. The results also demonstrate that quality is becoming more consistent, with a reduction in the variation of tenderness meaning there is less risk of a consumer buying an excessively tough cut. Cooking up halal opportunities A seven-part series was broadcast on British Muslim TV as part of our ongoing commitment to the halal sector. The programme, called Healthy Kitchen, demonstrated the quality of home-produced beef and lamb, as well as showcasing new and innovative recipes. The series also focused on production and traceability, highlighting how the important and growing halal market adds value throughout the supply chain. 10

11 Beefing up the Hong Kong market Developing existing markets for beef and sheep meat and gaining access to new ones continued to be a key focus of our activity. Overall, beef exports increased in volume by 10 per cent year on year, with exports to non-eu markets increasing by 49 per cent. Our strategy of developing exports of high-value beef is reaping rewards. For example, there was a 206 per cent year-on-year increase in the value of fresh product sent to Hong Kong in 2016, making it the largest destination for UK beef outside the EU. We have an ongoing programme of promotion in this market, including a presence at trade shows and working with the foodservice and retail supply chain to develop the market for quality assured beef and lamb. 11

12 Strategy support This area of work covers any activities that underpin the two strategies outlined previously, including communications and a continued focus on improving internal efficiency and providing the best value for money to levy payers. Brexit thought leadership We produced a number of detailed analysis documents to help farmers, growers and the wider industry understand the impact and potential opportunities of the UK s decision to leave the EU. Our growing library of Horizon publications examines the issues that will shape the agriculture and horticulture industries post-brexit, enabling businesses and policymakers to prepare to meet future challenges. Market Outlook moves online More than 150 delegates logged on to our first digital Livestock Outlook to hear the latest analysis from AHDB experts, with hundreds more watching videos of the event. The webinar replaced the Livestock Outlook Conference, which had been held in central London for a number of years, making it more accessible to levy payers. The online event saw analysts from AHDB Market Intelligence cover outlooks for beef, lamb, pork and feed grains for the coming year. Increasing in-house expertise As part of our drive to reduce costs and increase efficiency, we identified the opportunity to save money by bringing certain areas of work in-house rather than using external suppliers. This included creative design work, the majority of our digital work (such as video production and social media campaigns) and our regular public relations and issues management work. 12

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14 Operating income and expenditure 16/17 (,000) 15/16 (,000) 14/15 (,000) Income Gross levy 16,305 15,889 15,773 Fee/grant income 1,449 1,572 2,094 Total 17,754 17,461 17,867 Expenditure Levy collection (317) (293) (281) R&D, knowledge exchange (3,482) (3,006) (3,633) Promotion (UK) (5,059) (5,518) (5,388) International and export (4,703) (4,005) (3,468) Supply chain integration (319) (743) (881) Market intelligence (1,323) (1,695) (1,690) Communications (443) (636) (600) Digital & creative (391) Support (1,479) (1,396) (1,057) Total (17,516) (17,292) (17,028) 14

15 Areas of activity Research and development and knowledge exchange Includes the activity of our regional knowledge exchange team, work delivered through the Better Returns Programme and our research and development activity. UK promotion Includes work to boost consumption of beef and lamb on the domestic market. International and export Includes our presence in a significant number of key export markets for UK beef and lamb. Supply chain integration Includes our work on meat quality and activity to gain access to new markets for beef and sheep meat. Market intelligence Provision of market information to the industry, including price reporting. Communications Includes the operation of our press office, the production of communication materials and liaison with NGOs and government. Digital & creative Covers creative design and digital work, including activity which was previously delivered by external agencies. Support Contribution to AHDB central support costs (eg finance, human resources, information services). 15

16 For more information contact: AHDB Beef & Lamb Stoneleigh Park Warwickshire CV8 2TL Tel: AHDB_BeefLamb AHDB Beef & Lamb facebook.com/ahdbbeefandlamb beefandlamb.ahdb.org.uk While the Agriculture and Horticulture Development Board seeks to ensure that the information contained within this document is accurate at the time of printing, no warranty is given in respect thereof and, to the maximum extent permitted by law the Agriculture and Horticulture Development Board accepts no liability for loss, damage or injury howsoever caused (including that caused by negligence) or suffered directly or indirectly in relation to information and opinions contained in, or omitted from, this document. AHDB Beef & Lamb is part of the Agriculture and Horticulture Development Board (AHDB) Agriculture and Horticulture Development Board All rights reserved.