Update from the Pork Sector Council Chair (March 2025)

Reflecting on the last 12 months

In less than a month’s time, I will have crossed my first year as Chair of AHDB’s Pork Sector Council and member of the board of AHDB.

It has been a thoroughly enjoyable first year, observing the nuances of the industry that have developed since I was last at the coalface, meeting many talented and committed people across the sector, and helping bring the sector council together to guide and drive AHDB’s positive impact for levy payers and support the executive’s ability to deliver on the council’s expectations.

It has also been interesting to see how sentiment across the industry has evolved over that period. A year ago, few producers were actively pursuing growth projects, with the majority apparently content to further replenish the coffers decimated over the crisis.

However, many more are now discussing capital investment plans, even if their execution is still severely constrained by lack of finance, uncertainty over future legislation, sclerotic planning regimes and weak confidence in future returns.

Some of this is down to the paradox of the difference between the prices for British and European pigs. The current price premium achieved in the domestic market is close to its highest in recent memory, which should be a reflection on a premium product worth investing in. Yet, the suspicion that this gap will close over time is another drag on investment sentiment.

Further, the consolidation between processor and producer – and across producers themselves – in the pig sector continues at pace. I’m not sure anyone has a clear picture of what the future equilibrium state of the market will be, but it is highly unlikely that we have seen the last of the significant corporate activity in this space.

Generating returns for levy payers

It is against this backdrop that at the start of March the Pork Sector Council met to confirm its budget for the coming fiscal year (to March 2026).

In the year just about to end, AHDB made great strides in generating a return for levy payers in its key priority areas.

Independent analysis confirmed a 10-to-1 return on retail sales for our advertising campaign, while the exports experts facilitated the opening of the potentially lucrative Vietnamese market and supported cross-sector efforts to get an important levy payer abattoir relicensed for the Chinese market.

Behind this, AHDB worked intensely to protect the reputation of British pork with domestic and overseas consumers while stepping up efforts to increase the sector’s resilience against health and welfare risks.

Given this, it was natural that the sector council would want to lean into these successes.

Over the last four months, the council and the executive at AHDB have worked to build a plan and budget that bolsters the activity levels across our priority areas while also ensuring that all other facets of work are fully funded.

There are three particular investments worth pulling out, as follows.

This is British pork. But not as you know it

The advertising programme for British pork has been refreshed, with a vibrant new collection of advertising assets that force a reappraisal of British pork at mealtimes.

The new programme will have two bursts of television advertising during the year (doubling last year’s activity), recognising that it remains the most impactful advertising medium for every pound invested.

We will also look to facilitate maximum coordination between processors and retailers over these TV campaigns.

Strengthening relationships with China

It is well understood how important the Chinese market is to the British pork industry in maximising carcase value (and ultimately the pig price) by selling 'fifth quarter' products at a much higher price than can be achieved in the domestic market.

A pivotal element to serving the Chinese market is building our long-term relationships with Chinese governmental and industry authorities.

These relationships are better maintained by an in-country presence in China, and AHDB has had a local representative – Holly Chen – there for many years.

Recent global geopolitical strains present both risks and opportunities for English exporters of pork to China. The recent relicensing of two UK pork plants is symptomatic of an improving political climate at a time of heightened tension between other Chinese trading partners.

As a result, the sector council will look to invest further in its Chinese presence, with additional resources in situ.

Training and retaining the next generation

Thirdly, over the course of my meetings with levy payers since taking on the role, there has been a consistent message coming back to me, and the executive, that levy payers see attracting and retaining labour as a fundamental challenge to maximising the return on their assets.

The arrangements individual businesses have with their staff are wholly competitive in nature, and do not fall into AHDB’s remit.

However, as we have shown with a hugely successful stockperson training suite, we can help improve the skills and effectiveness of employees across the sector as a whole. In the coming months, AHDB will look to further extend and upgrade its training resources available to levy payers.

This will be achieved alongside an ongoing body of work that protects and improves the resilience and reputation of the industry at large:

• Rolling out advice and resources to prepare for any outbreak of ASF remains a top priority
• Providing evidence on the impact of possible legislation changes will be sustained
• Making long-term strategic investments in accurate sustainability measurements and efficient farm data capture continue at pace

Importantly, all of this will be backed up by a renewed internal focus in AHDB itself to achieve significant operating efficiencies.

This will ensure that the maximum amount of levy gets to front-line activities.

It is possibly not seen directly by levy payers, but there has been a huge cultural shift in AHDB over the last year since the appointment of Graham Wilkinson as Chief Executive Officer.

There is a clear strategic objective to be ‘the key that unlocks the success of British agriculture’.

This has been built on a platform of accountability and empowerment across its employees. Specifically, the leadership team at AHDB has made clear and measurable commitments to the sector council to improve the internal operating efficiency of the organisation.

It is now the job of the sector council to hold them to it.

Reasons to be optimistic about the future

Notwithstanding the challenges noted earlier in the update, there are several reasons to be optimistic about the longer-term future for the industry.

Sharp rises in the price of other red meats have materially improved the value credentials of pork as a core element to the shopping basket.

Further, innovation and premiumisation of the product and its presentation on many retailers’ shelves is changing perceptions of what pork can bring to mealtimes.

Across the supply chain, the desire to reduce the volatility in returns to primary producers should eventually lead to a greater appetite to invest for growth and efficiency. These are generally positive industry dynamics.

Before I sign off, I will repeat the same message I have ended all my previous updates with.

AHDB will only maximise the return it can generate for levy payers if it is fully embedded in the industry’s plans.

To achieve that, we need to hear from you – our doors remain open.

Get in touch with Glen: glen.nimmo@ahdb.org.uk