AHDB Potatoes Business Plan 2016-2019

AHDB Potatoes is a division of the Agriculture and Horticulture Development Board.

AHDB Potatoes Business Plan 2016-2019

AHDB Potatoes Business Plan 2016–2019 Page 2 of 22

Contents

Outlook for the potato sector ................................................................................................................... 3

Key achievements in the last year .......................................................................................................... 5

Agriculture and Horticulture Development Board priorities ..................................................................... 6

Overview of AHDB Potatoes strategy ..................................................................................................... 7

What’s new? ............................................................................................................................................ 8

Strategic themes for 2016/17 and beyond .............................................................................................. 9

Activity plan ........................................................................................................................................... 12

Funding the plan ................................................................................................................................... 20

AHDB Potatoes sector board members ................................................................................................ 22


Outlook for the potato sector Trade for the 2015 crop has remained relatively firm and farmgate potato prices have tracked marginally above cost of production. This is a consequence of lower plantings in 2015, which in turn, is a consequence of lower prices in the previous year. While positive for growers, the market will remain tense for supply chains seeking particular products for 2016, eg. seed for some varieties. In retail terms, markets look relatively positive, with moderate growth in all categories through supermarkets and out-of-home meals. This, however, has been delivered at the expense of value, with competition fierce among retailers, driven by discounters. The challenges remain the same as previous for the potato sector, with pressure on water resources, crop protection products and soil management as three technical issues that will need addressing if yield is to improve over time. Two key challenges face the GB potato sector:

To profitably and efficiently produce crops that compete with mainland Europe and can offset imports, against a backdrop of reduced pesticide availability and intense regulation (eg Water Framework Directive)

To drive consumption, for all potato formats and seed through innovation and market development.

Northern European producers continue to produce average yields higher than producers in GB, therefore positive news in terms of retail volume growth is offset by European producers’ ability to eat into British market opportunities. However, GB producers may capitalise on short production in other parts of Europe. This situation is replicated elsewhere around northern Europe in terms of smaller crops, particularly in central Germany and Poland where high temperatures and drought have led to shortages, certainly in the short-term.

Export potential for British seed continues to grow as new markets are developed and opened and reliance on a single dominant customer, Egypt is de-risked. Opportunities for ware exports are also continuing to grow, particularly for added value products like high-value crisps. At AHDB, we are able to contribute new information drawn from data sources that provide very clear pathways towards these opportunities. We plan to publish these as a quarterly dashboard for industry, who will be able to look closely at where the opportunity matches their business. At the same time, we will be increasing our efforts in export and plan to introduce a new activity which will support the ware sector and is designed to run alongside our existing seed component. This will allow us to quickly establish markets where the hard work has already been done for seed exports and introducing ware opportunities should be more straightforward. Ware support activities will include our existing overseas trade events, advice on markets where appropriate and engagement with Government over access issues but will not include primary market development.

AHDB Potatoes can respond to the industry challenges in various ways, through its technical marketing and knowledge exchange programmes. We will be providing access to an ongoing industry-agreed Research and Innovation strategy that tackles some of the issues underpinning the current yield plateau. These include soil management, crop protection, agronomy and so on. We will be launching the innovation stage of our R & I strategy within this plan and will work with stakeholders to find the best research to underpin consumer-related traits across a range of potato products (eg product consistency, health and fortified foods). With industry agreement, we will find the most appropriate areas for funding which have an impact on how we fight back against European competition by improving our own productivity in GB. Having gained extraordinary interest in our strategic potato farm, we will be seeking to launch two further sites, ensuring producers around the country have access to the new facilities. The purpose is to put our research-derived best practices in front of growers and prove their worth in genuine commercial situations.

What is important in the research-commissioning process is that we are able to take better advantage of the shared resources across AHDB and spend in a coordinated fashion against key issues like soils, pesticides and water resources. Further commitments have already been made for others to participate through funding in the new Agri-Tech centres.


Working through this mechanism will allow us to amplify the impact of every pound of levy spent on Research and Development. Capital investment at Sutton Bridge will allow the further development of resources that are fit for the future and help others collectively tackle storage issues.

Similarly, we will be using the combined resources across AHDB to ensure we position the potato industry as a vibrant and important contributor to the economy, producing healthy, traceable contributors to the diet in all potato formats and we will continue to provide our levy payers with the appropriate tools to amplify this message through our One Voice activity.

Being able to develop the new activities featured in this plan inevitably means that some activity will have to cease in the current year. We have been evaluating methods for scoring the new investment and these are now being incorporated in the planning process, enabling us to look critically at different criteria for new proposals and the impact on levy payers, businesses, the supply chain and the environment. Already, we have moved away from activities like National Chip Week, replacing it with B2B activity, by linking up with Seafish and over time, this will allow us to be much more critical in choosing levy investments where we know there is a very strong possibility of return. Rob Clayton

Strategy Director AHDB Potatoes


Key achievements in the last year

Tangible contribution to industry’s succession plan Total of 10 PhDs and three fellowships tackling key issues like greening funded and 12 industry participants in the Next Generation programme, helping to ensure the sector has knowledge and expertise for the future.

Innovations in knowledge transfer Industry now engaged with SPot farm through site visits (>300 visitor), discussion groups and blogs (>4,000 downloads). This is an innovative way of putting many R&D outcomes onto the same farm to demonstrate improvements in productivity, matched by store audit services from Sutton Bridge Crop Storage Research.

Helping levy payers raise the nutritional profile New One Voice products established through levy payer voting accessed and displayed 4,000 times, extolling the potato’s fibre, potassium, vitamin and fat-free credentials.

Access to overseas markets Worth over £1M in the first season, the Cuban market opened and trade with Russia restarted, along with a successful mission to India de-risking GB’s reliance on North African seed customers.

Revamp of MI tools Simpler yet more insightful and easier to read products introduced, like the new Consumer Category report, leading to more timely exposure of trading opportunities facing the sector.


Agriculture and Horticulture Development Board priorities

Introduction

The Agriculture and Horticulture Development Board (AHDB) is a Non-Departmental Public Body, funded by farmers, growers and others in the supply chain through statutory levies. These levies are ring-fenced to be used for the benefit of levy payers in the sector from where they are collected.

This AHDB Potatoes Business Plan, while addressing the specific needs of the British potatoes sector, forms a constituent part of the wider AHDB Strategic Plan. Our sector advisory boards determine which strategies are most appropriate for levy funding to address the specific priorities in each sector.

The AHDB Strategic Plan and the six business plans can all be downloaded from www.ahdb.org.uk/publications

AHDB Purpose

AHDB Vision of Success

In order to help in determining which activities are best placed to meet this ambitious purpose our six sector boards met at conference at the end of June 2015. They determined what they thought success looked like for the UK agriculture and horticulture industry. The key descriptors were:

AHDB Priorities

AHDB’s levies fund activities which contribute to the industry achieving this vision. The work in each sector varies depending on the specific priorities of the sector, however all strategic activity across AHDB is delivered against two overarching priorities:

This business plan sets out the strategy for Potatoes levy-funded activity under one of these two priorities.

AHDB Purpose

•To equip levy payers with the information and tools to grow and become more competitive and sustainable

AHDB Vision

• The industry is economically and environmentally sustainable • The UK's share of domestic and international markets is growing in terms of volume and value • Our farm level costs of production are competitive with our main competitors, especially in the EU

• The industry has a good understanding of market and consumer requirements

AHDB Priorities

•Boost competitiveness and sustainability•Grow market opportunities


Overview of AHDB Potatoes strategy

AHDB Potatoes

Strategic Aims

• Improving technical efficiency• Improving business efficiency• Improving the UK's competitiveness• Upskilling the industry

AHDB Potatoes – key activities

Improving technical efficiency Provide the best possible value for money in investment in applied research and strategic

science projects Improve access to KE products through digital delivery and growth of strategic potato farm

programme Improving business efficiency Robust portfolio of MI products Cross-sector benchmarking development Store audit services Improving the UK’s competitiveness Provide R&D and KE that maintains high plant health status Monitor overseas practices and understand legislative, policy and cultural impacts on cost of

production Upskilling the industry Provide support for PhDs, Fellowships and NextGen programme Contribute to industry’s CPD through BASIS and NRoSO Growing the market for our products Maintain and increase demand for potatoes and potato products through consumer campaigns,

education and export promotion Provide stakeholder-agreed corporate affairs and issues management service

• Growing the market for our products


What’s new?

Refurbishment and installation of fit-for-future research facilities at Sutton Bridge (subject to AgriTech funding timelines).

Coss-sector implementation of research, eg water, soils, rotation.

Expansion of Strategic Potato Farm programme – initiating new sites in Scotland and the east of England.

Extension of the Seed Export strategy to incorporate ware and potato products.

Launch of quarterly sector opportunities review for export.

Switch to tablet-enabled products in Market Intelligence. Revamp and relaunch of decision support for crop protection (blight and PCN).

New training modules to put potatoes front-and-centre in catering colleges.

New nutritional evidence supporting fish and chips.


Strategic themes for 2016/17 and beyond AHDB Potatoes has six strategic themes that fall under AHDB’s two priorities:

Boost competitiveness and sustainability

Improving technical efficiency Improving business efficiency Improving the UK's competitiveness Upskilling the industry

Grow market opportunities

Growing the market for our products Grow opportunities overseas and

support

Delivery of this plan is underpinned by communications to levy payers, stakeholders and media along with a continued focus on improving internal efficiency and providing the best possible value for money to levy payers.

Growing the market for our products

Domestic

AHDB Potatoes aims to deliver added value to the potato industry by focusing consumer spend in areas that complement marketing investment from potato businesses through three key activities:

Education: Reaching tomorrow’s potato consumer with a targeted, engaging and inspiring programme (through Grow Your Own, Cook Your Own and new catering college activity), we will build knowledge that potatoes are ‘good for you’ and inspire confidence to add them to simple recipes.

EU Campaign (2015-18): Encouraging an audience of younger women (25-34 years) to re-appraise potatoes by creating confidence that they are: i) healthy; ii) delicious and; iii) convenient. The consumer will be reached via traditional media (eg print) supplemented with digital media (social media, vlogger and blogger), including a completely revamped lovepotatoes website which will host the 270 recipes generated over the course of the new three-year campaign.

Fresh Chips: In collaboration with likeminded organisations (SeaFish and NFFF), we will focus on B2B activities to assist chip shop owners develop their businesses to compete with other high street food providers. A joint campaign with SeaFish in 2016, focusing on nutritional qualities of fish and chips relative to other takeaways, will run in parallel.

Global

Building on the existing seed strategy to steadily open new markets and de-risk our reliance on North African customers, we will work to introduce new opportunities for ware (and potato products) for existing and emerging destinations by enhancing dialogue with overseas governments. Levy payer knowledge will be enhanced through new opportunities-based reports delivered through MI. Specific mission targets for ware export will also be determined in consultation with industry.

Key outcome Key Performance Indicator Quantity and frequency of purchase of GB products increases at home an overseas

2% YoY increase in purchase frequency 3 new seed export markets opened by end of 2017

AHDB Priority 2: Grow market opportunities


Improving technical efficiency

AHDB Potatoes aims to deliver the best evidence-based research, skills, knowledge and tools to levy payers to help support them in their businesses. We continue to commission work against industry-agreed R&I strategy to ensure robust investment and apply cost-benefit tests to new and ongoing work.

The delivery to industry will feature an extension of the Strategic Potato Farm network, along with revamped decision-support systems for crop protection that compliment contributions to stewardship and will ensure that best practice is adopted for management of soils, water, nutrients and health and safety. The new strategy will rebalance the Research and Innovation investment and increased emphasis will be committed to improve crop utilisation, consistency of products and innovation to service market growth. For storage, effective sprout suppression and in-store crop consistency remain priority areas, and we will maintain our support of the Potato Industry CIPC Stewardship Group to retain this vital suppressant and ensuring fit-for-future research facilities at SBCSR.

Key outcome Key Performance Indicator Increased levy payer adoption of best practice derived from AHDB R&D

Return on investment baseline established for R&D

AHDB Priority 1: Boost competitiveness and sustainability

Improving business efficiency

AHDB Potatoes aims to deliver financial and MI data that allows businesses to develop a more detailed understanding of the market, to manage risk and volatility, to see opportunities and to understand their costs of production. To enable this, we will be switching to the AHDB Whole Farm Benchmark model and providing the technical and accounting support so that levy payers can work quickly and efficiently to understand relative strengths and weaknesses within their own businesses. Particular attention will be paid to storage costs, where services like Storecheck+ have already demonstrated benefit.

Key outcome Key Performance Indicator An industry that benchmarks, understands its cost of production and can understand the benefit of new best practice

Benchmarkers successfully provided with transition plans to new Whole Farm Benchmark platform


Improving the UK’s competitiveness

AHDB Potatoes sees plant health as a key influence on cost of production and the overseas customer attitude to GB-produced seed and ware. Plant health remains a key focus for our work and we will continue working with Defra’s risk register and, where necessary, provide the complimentary decision support, stewardship and research for domestic and emerging disease threats. AHDB Potatoes also aims to build industry knowledge on how to produce more for less, through activities like SPot Farm, and provide a deeper understanding of European costs of production, where necessary, seeking out the practices used overseas to achieve’ best in class’. We will explore the opportunities provided through participating in international benchmarking, consulting with industry before formally participating.

Key outcome Key Performance Indicator Gap closes in GB cost of production relative to northern Europe

New sites for SPoT Farm established with Levy payer testimony achieved; improved margins reflected in COP report



Upskilling the industry

We will continue to support the sector’s succession plan by funding PhDs, research fellowships and Advanced Training Partnerships, supporting the second wave of our next generation programme and ensuring we capitalise on NRoSO and BASIS accreditation for our technical events.

Key outcome Key Performance Indicator Recognised contribution to the potato sectors succession plan

Industry reports improvement in ability to recruit against measured baseline


Communications

We aim to enhance communication channels and activity to ensure knowledge is accessible, targeted, relevant and impactful for levy payers, and to make sure that the levy-base and stakeholders are fully aware of technical events and advisory products. This will drive numbers to knowledge exchange days and ensure that AHDB messages reach the wider industry.

For stakeholders, we will continue to focus on agreed core territories and provide updates against horizon scanning. One Voice will continue as a communication mechanism that enables the often-disparate potato industry to deliver cohesive messages. This will focus on key marketing campaigns and, when relevant, support collateral will be provided for levy payers to use.

We will promote a vibrant and positive industry through the continued provision of media, issues and crisis management service. We will accentuate positive messages such as industry’s economic contribution to GDP and potatoes’ health profile and its position as the ‘carb of choice’, while mitigating potentially damaging stories.

Improving performance

AHDB is targeting generating cost efficiencies from its restructuring and functional ways of working of £1m pa, using the 2014/15 financial year as a base. These savings will be generated over the coming months and will be realised over time as the changes gain traction. The purpose is to deliver more services for the same cost, which means that money will be invested into new services for the benefit of levy payers.


Activity plan


Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Improving technical efficiency

In R&D Continued implementation of 2015-2020 R&I strategy Commission projects on customer-facing traits within the ‘Promote’ strategic objective that are agreed with industry stakeholders Establishment of cross-sector soils and water research partnership with integration of agreed potato related projects

Stakeholder engagement in R&I strategy. Industry participation in new customer-facing and soils partnership projects. Return on research investment methodology and baseline established

Level of engagement identified from annual stakeholder meetings (eg with PPA and FPSA) and reported to RKT Committee. Mid-term review of R&I strategy in 2017/18

Lack of agreement on programme priorities Funding not achieved from partners and third parties

Active levy payer and stakeholder engagement in the implementation of the R&I strategy monitored through AHDB Sharepoint

Storage R&D Refurbishment and enhancement of facilities at SBCSR (scale dependent on success of AgriTech bid) Research projects commissioned at SBCSR and specialist centres to improve sprout and disease control and, optimise the quality of stored seed, ware and processing crops and explore alternative sprout suppressants.

Fit-for-future research facility at SBCSR Balanced income and expenditure for levy, government (eg InnovateUK) and commercial activities (c£700k pa) Completion of agreed R&D projects in accordance with milestones.

Update of independent review of storage facilities and research capability shows improvement against 2015 review. Quarterly committee review of SBCSR balance sheet Six-monthly trend analysis of ISO compliance (target = no increase in non-conformance)

See above

See above


In KE Communicate methods to improve marketable yield, improve quality and control input costs of crops in all sectors Ensure that losses within supply chains are understood, while communicating methods aimed at whole-crop utilisation and continued waste reduction Continued development of demonstrations of beneficial R&I products through SPot farm Assess and communicate issues relating to water availability and efficient utilisation

Industry has access to project outputs and appropriate KT tools to improve crop utilisation, sustainability and resilience Two fully Integrated demonstration sites (SPot farms) are available to the industry during 2016 season. Further sites and continuation of the programme planned for 2017. Industry is ready to comply with the objectives of The Water Framework Directive (WFD)

Cost benefits of implementation of best practice understood and implemented the majority of growers, agronomists and supply chains and demonstrated through three case studies pa). 400 visits recorded to SPot farms as being beneficial to their business in terms of adoptable technologies. (Measured through event feedback). Water survey (joint with AHDB Horticulture) records baseline of businesses taking action to improve water resource management.

Compliance with regulatory change (plant protection, water and soil management, etc.) compromises yield and quality. Extreme weather affects both SPot Farm delivery and WFD targets.

Communicable message adjusted to account for regulation and weather.

Storage KT Run Storage 2020 campaign, including TIPS virtual tool and best practice messaging on storage improvements and management to promote sustainable storage solutions. Global review of storage best practice (to include study tour)

Increased adoption of best practice leading to better storage performance across the industry through engagement with 550 levy payers who store (50% of those who store). 100% of stores, where CIPC is used, have fitted invertors/means to achieve active ventilation by Storage season 2017. 50% levy payers engaged in S2020. 20% adoption of energy-saving measures.

Winter storage surveys to take place 2015, 2016 and 2017.

Unexplained variation affecting trials due to seasonal effects of dormancy and biochemical status. Industry's ability/ willingness to invest in new storage and adopt best practice remains limited.

Work planning at SBCSR. Clearly demonstrate cost-benefit of changes based around normalised returns.


Improving business efficiency Benchmarking Development of a Benchmark model that fully recognises the place potatoes play within the wider farming industry Model used to develop understand and feedback information on costs of production, EU competition, etc.

Most levy paying businesses aware of whole farm benchmarking tool. Awareness of the advantages of benchmarking and the risk/rewards associated with activities such as of production on marginal land, speculative planting, varietal changes, new precision techniques.

All existing users provided with a transitional plan to switch to the new Whole Farm Benchmark platform. Complete switch by May 2016. Develop new Benchmark groups focused on potato outcomes by April 2017, (four regional feedback groups containing 40 benchmarked crops) balanced between market Issue an annual publication (Jan) that reviews cost pressures that will impact the comparative cost profiles incorporated within the farm bench model.

Inability to raise RDPE funds.

Close liaison with AHDB skills programme.

Store auditing Deliver upgraded store audit service (Storecheck+) to improve the quality of storage facilities in GB, enhancing industry’s ability to store effectively.

100 Storecheck+ audits by October 2016.

Key industry recommendations report following completion of audits.

Cost benefit not recognised reduces uptake.

Cost benefit oriented messaging.


Improving the UK’s competitiveness Plant health Continue Plant Health in partnership with Government and stakeholders utilising GB Plant Health Risk Register Focus R&D projects and KE on key plant health issues: nematodes, blight, aphids, virus and blackleg, utilising AgriTech

Improved industry and stakeholder awareness of research. Best practice platform for pesticide and environmental stewardship activities utilised. Redevelopment of disease management tools (Fight against Blight) for industry and amateur gardeners Industry recognises value of transparency to manage plant health risk in imports.

Frequency of new plant health risks on register 5% increase awareness and satisfaction for disease management tools; measured in levy payer benchmarking survey. Industry adopts disease mitigation and risk management practices for growing and storage, measured by % recall of services (see above)

Emerging plant health risks not identified in Risk Register. Reduction in Defra support for CRD research.Loss of Plant Protection Products. Perception that commercial reward outweighs plant disease risk in supply chains. Lack of compliance by trade and reporting country.

Horizon scanning and regular dialogue with key stakeholders and review of EU position relating to Plant Protection Products. Continued interaction with CRD, Defra and Scottish Government PRC etc. Continued watching brief on international plant health developments.

International comparisons Scope and explore possibilities to join international benchmarking groups

GB levy payers benefit from knowledge of international production practices.

Investment test prepared by July 2016.

Upskilling the industry Skills Deliver a range of skills-enhancing activities; on-farm best practice training, business improvement and customer focused programmes for retailers and food service Support for studentships and fellowships Second wave of Next Generation programme Provision of consumer insight reports for levy payers and bespoke advice

Levy payers are equipped with vital skills and business planning information to secure profitability and sustainability. The potato industry attracts quality new entrants to ensure succession. Deliver continuity of scientists and technologists with potato-relevant experience. Levy payers have access to bespoke consumer research

Survey industry satisfaction with, training provision, knowledge exchange Industry reports improvement in ability to recruit quality new entrants by 2018 (baseline survey 2013). RDPE funding exploited to enhance delivery. Scientific output from funded studentships and fellowships.

Industry does not engage and does not have the skills to exploit new R&D. Match funding not achieved. Lack of expertise and resources.

Involve industry in development of projects and outputs. Work with industry to jointly investigate where the strategic skills gaps are. Align activities with other initiatives, eg AgriSkills strategy and Trailblazers. Maintenance of Analyst Development Scheme and introduction of CPD System. Our systems become quality assured.


and information for AHDB Potatoes marketing team. To include potential growth opportunities and impact of changing retail environment (eg discounters)

and market reports to support profitable business decisions and highlight marketing opportunities (NPD/Promotion).

AHDB Priority 2: Grow market opportunities

Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Growing the market for our products

EU Platform marketing campaign to promote potatoes, encourage consumers to see potatoes and processed products as healthy and convenient choices To develop a tranche of 60 support recipes that can be cooked in 30 minutes or less and have a set calorie level

Halt the long term decline in sales and consumption of fresh potatoes among the key target audience (22–44 years) increasing frequency of purchase by 2% pa. Build on perceptions that all potatoes and related products are healthy by +5% over the three years of the campaign.

YouGov tracking survey twice yearly (July/January) to track health perceptions re: source of fibre, source of potassium and naturally fat-free. Quantitative research measuring campaign awareness with pre and post tracking conducted. Pre conducted Sept/April and post November/July. Volume and Frequency measures will be tracked on-going via Kantar Worldwide panel.

Uptake by retailers and media impacts on effectiveness of consumer activity. Lack of retailer uptake due to corporate branding challenges and limited AHDB Potatoes resource. Euro exchange rate fluctuation.

All platform campaigns are tested with consumers and work with the current retail and media environment. Retailers and supply chain involved in strategy development and supply chain lead on encouraging adoption by retailers due to limited AHDB Potatoes resource.


Chip To be considered the authority and experts on potatoes by the fish and chip sector by: Nutritional research project in conjunction with Sea Fish with respect to Fish and Chips Year-round activity to support promotion and product quality in chip shops (skills)

Fish and chip shop owners develop and improve their businesses through better knowledge, practices, promotion and the delivery of improved product quality. ‘Good potato Management Guide’ and ‘Varieties Guide’ on website. Create ‘Healthier Chips Tips’ e-poster on potatoes.ahdb.org.uk. Fish and chips recognised as a healthier choice compared to other high street take-aways.

The combined reach of e-newsletters from external stakeholders (potato merchants/chip shop suppliers) sent on a twice yearly basis (Nov/March). PR coverage tracked through Gorkana (AVE/OTS/CPT and ROI) secured in support of the nutritional analysis project.

Negative press coverage particularly health scare stories spill over into whole industry.

Media issues management plan and stakeholder briefing process is in place to manage this.

Education Primary school growing education programme, delivering 12 weeks of learning. Secondary school cooking education programme, to develop skills. Contribute to the AHDB Education strategy Launch of activities for catering colleges

Relaunch of the CYOP microsite with refreshed content and visual presentation by April 2016. Launch of a new FE/HE module targeting catering colleges by April 2016.

Increased number of Primary children participating in programme from 400k to 465k measured through survey. Extend reach in secondary schools to 2,000 (49%) by end of 2016/17. Higher Education: Qualitative research 6-months post launch to determine reaction to content and site presentation.

Reduction in Government spend restricts school activities.

Minimise resources needed by schools.

Export (seed) Maintain the status of the GB high health region. Build and support a vibrant portfolio of export opportunities for both seed and ware (and products)

Greater levy payer awareness of export market opportunities and role of plant health. Increasing GB market share of total European exports for

Senior officials in three new export destinations aware of benefits of GB seed and ware by end 2016. Export opportunities dashboard published by end

Lack of uptake of Safe Haven, due to economic climate and low availability of varieties. Dashboard fails to address competition issues.

Promotion of GB unique plant health position and risks associated with seed imports. Market testing of dashboard prior to launch.


Identify and commission research and knowledge exchange projects addressing priority issues for the seed industry. Review awareness of seed quality, handling and storage issues

both seed and ware potatoes. Improved connections within seed to ware supply chain.

of 2016 and updated quarterly. Maintenance of existing markets (Gov statistics published each April) and relationships developed with three new export destinations by end of 2017.

Industry loses faith in GB seed by misunderstanding the relevance of key quality characteristics. Political instability elsewhere leads to rapid turnover of officials and erodes knowledge.

Benefit-led KT campaign within whole supply chain. Regular scrutiny of contacts lists. Use AHDB Risk Register to manage issues relating to exports Review of available land.

Delivery

Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Communications

Direct LP Support other functions through development of communications channels and activities to ensure knowledge (potato and wider AHDB) is accessible, targeted and relevant Participation in digital rationalisation across AHDB Improved accessibility (eg tablet) of MI services including price, yield, area, stocks, annualised trend data, consumer insight, etc.

Communications accessed by levy payers and has impact AHDB Potatoes is regarded by the majority of levy payers as providing good value for money and they actively engage in campaigns and programmes through a consistently applied brand. Levy payers have continued access to quality assured market information and can therefore plan for their businesses and maximise their returns.

Monitor levy payer awareness/value perception - levels of engagement in activities increase throughout the period of business plan. Quality standard measures adopted within MI. MI staff participation in levy payer meetings maintained at 10 pa. Seamless transition, to tablet enabled products by March 2017.

Hard to reach groups are not engaged.

Review of targeting methodology. Actively use the Board and advisory committees.

Press office/issues Act as the potato industries press office responding to ad hoc enquiries and crisis comms Media issues management programme, including staff training, scanning,

Manage the media to deliver positive or neutral coverage for the potato industry, where possible.

Maintain consumer attitude to potatoes in relation to safety and health. Evaluation of media coverage.

Some scare stories on health or biotechnology may not be evidence-based.

Planned response ready and credible spokespeople briefed.


monitoring and preparing statements

Evaluation of major issues response, including industry and stakeholder feedback.

Corporate affairs Acting as a knowledge house for stakeholders, on health, sustainability and economic contribution of the sector Continued roll-out of stakeholder information pack for core territories – nutrition, soils, water, waste, pesticide and skills. Ensuring key messages are balanced on our website Providing leadership for industry stewardship activities

Potatoes are seen as a ‘good food’; given as one of the first examples by influencers when asked about healthy and sustainable options. Positively connect potatoes and the potato industry into key political drivers (employment statistics, economic contribution, nutrition, etc.) Evidence base provided on CIPC and nematicide and industry due diligence recognised.

Positive feedback on stakeholder information packs. Maintain stakeholder and approval holder participation in CIPC and nematicide stewardship. Policy and regulatory authorities recognise potato industry’s role in Stewardship (tracking of public minutes).

Stakeholder support is limited due to budget constraints. CIPC Approval holders adopting competitive position. Adoption of Potato Specific corporate affairs compromised by reorganisation.

Seek support options that can be implemented at low or no cost. Competition law included in ToR for stewardship groups. Establish profile for this activity as part of AHDB Activity Review.

Improving performance Staff development and succession planning

Ensure work is adequately resourced and staff have the necessary skills and expertise to deliver their roles.

Number of training events per staff member. Staff retention.

Staff turnover. Ensure succession planning in place for business-critical roles.

Project evaluation Projects undertaken are relevant, provide value for money, increase arable business profitability and are environmentally sustainable.

Economic and environmental evaluation included in all R&KE proposals. Cost benefit analysis of projects (investment testing) included at planning stage.

Staff resources and time taken to evaluate projects.

Adequate staff resources are in place to evaluate projects. Evaluation embedded into every aspect of AHDB activity.

Cross-sector working Provide more cost-effective services to levy payers through collaborative working where relevant.

Number of cross-sector projects Potatoes sector involved in that add value to potato levy payers.

AHDB resources available to implement and fund cross-sector projects.

Set aside financing and staff resources for relevant AHDB projects.


Funding the plan Levy rates

Levy rates are reviewed annually by the AHDB Potatoes Board.

AHDB will retain current levy rates for 2016/17 for producers who grow 3ha or more and purchasers buying over 1,000 tonnes per year.

Potatoes (GB) Levy rate 2015/16 Levy rate 2016/17 Higher rate for late payment

Potato growers £42.62 per hectare £42.62 per hectare £46.882 per hectare

Purchasers of potatoes

£0.1858 per tonne £0.1858 per tonne £0.2044 per tonne

Summary of proposed expenditure

The approach to managing AHDB Potatoes finances will be to apply strong financial disciplines as follows:

The financial plan will be based on the activities required to deliver the Corporate Plan AHDB Potatoes will target a small deficit. Our aim is to maintain a revised sector reserve of

£1.79 million over time as part of AHDB’s overall reserves strategy Revenue is adjusted to take account of the most recent retail figures (Kantar) and KPIs

relating to marketing which alter tonnage expected along with a more strategic approach to levy leakage surveillance

The levy rate will be reviewed annually as part of the corporate planning process, based on the cost to deliver the needs of levy payers

Budgeted income will be projected on a planted area of 111,600 hectares for the 3 years of this plan

Levy rates require ministerial approval on an annual basis, therefore, the levy rates in these financial projections are only an indication of our future plans.


PROVISIONAL

FULL YEAR £'000

14/15

Actual

15/16

Forecast

16/17

Budget

17/18

Budget

18/19

Budget

16/17 vs

15/16

INCOME

Gross levy 5,887 5,528 5,620 5,690 5,760 92

Direct levy collection costs 0 0 0 0 0 0

Net levy income 5,887 5,528 5,620 5,690 5,760 92

Fee and grant income 541 895 1,066 1,066 706 171

External skills 143 0

Commercial Services 0 0 0 0 0 0

Non‐levy income 684 895 1,066 1,066 706 171Bad debt 15 ‐10 ‐10 ‐10 ‐10 0

TOTAL NET INCOME 6,586 6,413 6,676 6,746 6,456 263

EXPENDITURE

DIRECTR&D and Knowledge Exchange ‐2,717 ‐2,820 ‐2,526 ‐2,579 ‐2,579 294

External skills ‐155 0

Trade development ‐1,260 ‐1,540 ‐1,724 ‐1,724 ‐1,364 ‐184

Export development ‐123 ‐125 ‐128 ‐130 ‐130 ‐3

Supply chain integration ‐203 ‐155 ‐180 ‐183 ‐183 ‐25

Market Intelligence ‐451 ‐495 ‐423 ‐399 ‐399 72

Communications ‐397 ‐427 ‐550 ‐555 ‐555 ‐123

Commercial Services 0 0 0 0 0 0

TOTAL DIRECT EXPENDITURE ‐5,307 ‐5,562 ‐5,531 ‐5,570 ‐5,210 31

SUPPORTSector specific administration ‐502 ‐505 ‐490 ‐490 ‐490 15

Human resources ‐56 ‐54 ‐55 ‐56 ‐56 ‐1

Facilities ‐225 ‐226 ‐237 ‐240 ‐240 ‐10

Finance and payroll ‐95 ‐95 ‐97 ‐99 ‐99 ‐2

Levy collection ‐73 ‐76 ‐77 ‐78 ‐78 ‐1

Procurement ‐22 ‐22 ‐23 ‐23 ‐23 ‐1

Information systems ‐118 ‐124 ‐113 ‐115 ‐115 11

Main board/advisory ‐68 ‐68 ‐69 ‐70 ‐70 ‐1

Corporate communications and legal ‐54 ‐66 ‐66 ‐68 ‐68 ‐1

R&D ‐7 ‐6 ‐6 ‐6 ‐6 0

Central support ‐718 ‐737 ‐742 ‐756 ‐756 ‐5

TOTAL SUPPORT EXPENDITURE ‐1,221 ‐1,242 ‐1,232 ‐1,246 ‐1,246 10

TOTAL EXPENDITURE ‐6,528 ‐6,804 ‐6,763 ‐6,816 ‐6,456 41

Operating surplus/(deficit) 59 ‐391 ‐87 ‐70 0 304

NON‐OPERATING ITEMS

Interest receivable 2 10 17 17 17 7

Taxation 0 0 0 0 0 0

Exceptional reorganisation expenditure 0 0 0 0 0 0

Other non‐operating costs ‐42 ‐18 0 0 0 18

Net FRS17 entries (HGCA pension) 0 0 0 0 0 0

TOTAL NON OPERATING ITEMS ‐39 ‐8 17 17 17 25

Retained surplus/(deficit) 20 ‐399 ‐70 ‐53 17 329

Opening reserves 1,835 1,855 1,455 1,385 1,332

Retained surplus/(deficit) 20 ‐399 ‐70 ‐53 17

Closing reserves 1,855 1,455 1,385 1,332 1,348


AHDB Potatoes sector board members

The main AHDB Board has delegated the responsibility to the sector board to develop the most appropriate strategies to meet the challenges of the sector; to ensure the relevant levy rate is recommended in order to provide adequate funding for the required work; to monitor strategy implementation and to approve remedies where performance deviates from plan.

The AHDB Potatoes sector board is comprised of levy payers, other stakeholders from the sector and independent members. The sector board members are appointed by AHDB.

Name Role Additional detail Date appointed

Fiona Fell Chair Apr 2014

Anthony Carroll Grower Northumberland Apr 2011

Dave Chelley Processor Apr 2012

James Daw Grower Staffordshire Apr 2014

Zoe Henderson Independent Apr 2011

Dan Hewitt Grower merchant Norfolk Jan 2013

Phil Huggon Independent Apr 2014

Bruce Kerr Grower Suffolk Apr 2013

Alistair Melrose Seed grower Angus Apr 2011

Bill Quan Grower Herefordshire Apr 2014

Alistair Redpath Seed merchant Perthshire Apr 2013

Mark Taylor Grower/packer Cambridgeshire Apr 2014

Vacancy Grower/food service

AHDB Potatoes also works closely with key stakeholders, government and devolved administrations and specialist committees dedicated to exports, research and knowledge transfer, marketing and market intelligence to ensure the work undertaken clearly meets the needs of levy payers.

Documents

AHDB Potatoes Business Plan 2016-2019