AHDB Cereals & Oilseeds Business Plan

Transcription

1 AHDB Cereals & Oilseeds Business Plan AHDB Cereals & Oilseeds is a division of the Agriculture and Horticulture Development Board

2 Contents Outlook for UK cereals and oilseeds... 3 Key achievements in the last year... 5 Agriculture and Horticulture Development Board priorities... 7 Overview of AHDB Cereals & Oilseeds strategy... 8 What s new?... 9 Strategic themes for 2016/17 and beyond Activity plan Funding the plan AHDB Cereals & Oilseeds Sector Board members AHDB Cereals & Oilseeds Business Plan Page 2 of 21

3 Outlook for UK cereals and oilseeds Economic focus Both grain and oilseed markets remain under severe downward price pressure due to three good years of global crop production, which have removed fears over tight supplies in spot markets. The situation is taking prices back to levels not seen since 2009/10 and will be a real test of resilience. Longer term prices are unlikely to stay low for grains, as global feed grain supplies (driven by maize) are in growing demand and not massively resilient to weather events, should they occur in 2016 or beyond. For oilseed rape, low global vegetable oil prices are a key issue with low crude oil prices (reducing free-market biodiesel production) and an abundance of other vegetable oils impacting this high oil-yielding commodity. Also, the strength of sterling versus the euro and strong soya bean production in the Americas are all taking their toll as farmers opt for low cost crops. Farm business resilience will be key to surviving this period of low prices, with cost competitiveness critical. To assist this, the expanded regional presence of AHDB s Cropbench+ will allow more farmers to benchmark and improve competitiveness. Growth in global production is largely being met by yield growth which is a threat to the UK s yield premium over the rest of the world. Relatively high UK yield is key for competitiveness in global commodity markets. Maize yield growth continues to outstrip that of wheat and is gradually impacting the ability of feed wheat to maintain global market share. This is making commodity feed wheat production increasingly risky, so dual-purpose varieties that can be grown efficiently for either milling or feed use are becoming increasingly important. Global trade continues to grow in importance, with demand geographically dislocated from production. This requires a good trade policy environment and ability to understand international market requirements in order to access and compete in growing markets. Growing issues Volatility in the market price of grain and oilseeds remains one of the industry s greatest challenges. The impact is growing and there is nothing to suggest that it will ease. Greater global real-time communications speeds up awareness of changes in markets around the world, along with greater access from speculators into the grains markets. Opportunities do exist for the industry to mitigate some of the effects of volatility, from knowing about and controlling input costs, to protecting against wide price movements. Awareness and use of these is growing and AHDB sees itself as continuing its role in assisting the industry in adopting them. At grower level, Monitor Farms and the Arable Business Groups provide a route to manage some of the impact of volatility. Assisting in the improvement of the technical efficiency for producing UK grains and oilseeds remains a priority for AHDB. The loss of actives for the control of pests and diseases and the ever-growing threat of resistance are at the top of our list, and we will continue to provide evidence to support those, seeking change to the regulatory environment. One area is to help the industry to make a clear distinction between crop development techniques that may currently concern consumers and regulators (GM) and other techniques where there should be no concerns, but may be caught in blanket legislation. Alternative methods of weed control, improving soil health and organic matter content and stimulating performance remain high priorities for AHDB. A better understanding of cover and companion crops and bio-stimulants are being added to our regular portfolio of technical work. We also see our role as continuing to ensure that the industry meets its environmental goals and is not made uncompetitive through measures that disadvantage UK industry. The NUTs2 programme is a good example of this. We will continually seek markets for unplaced product or where a higher value can be found. A second strong harvest in 2015 creates added pressure for new markets and we will continue to identify and open access to these, and we will assist the trade to benefit from the recently opened market in China for malting barley. A continuing strong pound and weakening currencies in some of our export markets grows the need for promoting the benefits of buying from the UK, be it quality or assurance. AHDB Cereals & Oilseeds Business Plan Page 3 of 21

4 Our work in education and training grows in importance as the supply of new entrants with the correct qualifications becomes pressured. We will continue our schools programme and work with colleagues in AHDB to promote the uptake of skills and apprenticeship opportunities. Well-functioning supply chains are at the heart of effective competitiveness. We complete the pilot egrain passport trial this year and we will be facilitating discussions across supply chains to gain an agreement of where to go to next. Data is at the heart of everything that we do. Developments in IT continually present new ways to gather information and the Big Data revolution presents real opportunities for industries made up of a plethora of small businesses of wide geographical spread. Cereals and oilseeds growers, up to 45,000 in the UK, are not only recipients of our work but could also be valuable suppliers of data to support some of our programmes. This year we intend to explore ways to collect data across a very wide number of businesses. AHDB is continuing to meet these challenges through: A focus on business and technical efficiency Improved interpretation and exploitation of research data Expanding opportunities in overseas and domestic markets Communicating supply chain best practice. Dr Martin Grantley-Smith Strategy Director AHDB Cereals & Oilseeds AHDB Cereals & Oilseeds Business Plan Page 4 of 21

5 Key achievements in the last year Improving industry resilience was the overarching theme for AHDB Cereals & Oilseeds activities in 2014/15, as the sector returned to more normal plantings following a difficult 2012 cropping year. Launch of the Variety Selection Tool Sitting behind the Recommended Lists project is a vast amount of data that can be used to gain a more specific insight into the relative suitability of varieties to certain climatic conditions and soil types. This tool allows growers to interrogate the information for their own situation. New programme on fungicide performance testing, including fusarium A new 4-year programme of fungicide efficacy testing has been commissioned to continue providing growers and agronomists with robust performance data and help farmers apply the optimum amount of fungicide for cost-effective disease control. For the first time, fusarium has been included in the wheat diseases tested to encourage more efficient control of head-blight. Establishment of the Industry Mycotoxin Forum The forum brings the whole supply chain together to discuss the issues relating to the presence of mycotoxins in grains and oilseeds. By AHDB facilitating these discussions, it is hoped that there is both a greater understanding of the issues and agreement on strategies that benefit the whole supply chain. Setting up the new benchmarking service The new CropBench+ is now web-based to increase accessibility and has been brought up to date to increase relevance to all businesses. Uptake has been quick and it is growing fast. Completion of the egrain Passport pilot With the tools in place, the system was put through its paces in a range of scenarios from field to store during and after harvest. From a technical point of view, the system works well in the test situations. With some final work in the autumn, the report on the pilot is expected in early AHDB Cereals & Oilseeds Business Plan Page 5 of 21

6 Facilitating a protocol to allow barley exports to China With China indicating an interest in purchasing UK malting barley, trade could only take place when a protocol on phytosanitary controls was in place. This could only be established after a visit of Chinese inspectors to see UK controls and assurance schemes first-hand. The successful visit took place in summer 2015 and a protocol was subsequently agreed. Completion of the AIC Opportunities and Threats project This AIC-initiated project was set up to identify the regulatory priorities for UK agriculture and the opportunities and threats from changing legislation. AHDB Cereals & Oilseeds sponsored the cereals and oilseeds section of this work. In addition to supporting developments in legislation, the work helps identify the longer-term needs of the industry. Building an evidence base for the impact of the withdrawal of neonicotinoid seed treatments Following the changes in legislation withdrawing the use of neonicotinoid seed treatments for pest control a number of pieces of work were carried out assessing the potential and actual impact of the legislation on arable production. This included the snap-shot assessment of the impact on cabbage stem flea beetle infestation and on farmer planting decisions. The work has been used to inform further decision-making and discussion of the legislation. Photo Second round of Monitor Farms Following the successful first round of Monitor farms in England, phase two was put into place and eight more Monitor farmers were recruited, taking the total to sixteen in England/Wales and two in Scotland. The launches took place and the eight new MF s quickly developed their management groups and ran their first open meetings. New R&KT Strategy launched The new "Investing in Innovation" research strategy was launched following extensive consultation. The new strategy has renewed emphasis on knowledge exchange and the delivery of outcomes that have commercial relevance. AHDB Cereals & Oilseeds Business Plan Page 6 of 21

7 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 Cereals & Oilseeds Business Plan, while addressing the specific needs of the English Cereals & Oilseeds 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 AHDB Purpose AHDB Purpose To equip levy payers with the information and tools to grow and become more competitive and sustainable 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 They determined what they thought success looked like for the UK agriculture and horticulture industry. The key descriptors were: 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 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: AHDB Priorities Boost competitiveness and sustainability Grow market opportunities This business plan sets out the strategy for Cereals and Oilseed levy-funded activity under one of these two priorities. AHDB Cereals & Oilseeds Business Plan Page 7 of 21

8 Overview of AHDB Cereals & Oilseeds strategy AHDB Cereals & Oilseeds Strategic Aims Improve technical efficiency on farm Improve business efficiency on farm Increase the competitiveness of UK cereals and oilseeds supply chains Grow the market for UK cereals and oilseeds AHDB Cereals & Oilseeds key activities Improve technical efficiency on farm Provide growers with the information needed to select the right varieties for the business and supply chain, and ensure that the agronomy is available to maximise the return on the varieties chosen Ensure that there is a full understanding on all technical aspects of production that affect yield and quality Improve business efficiency on farm Ensure that grain and oilseeds businesses have all the information needed to make the best financial decisions for the business building resilience and future-proofing the business Promote the benefits of good management of input costs and provide the tools to achieve this Increase the competitiveness of UK cereals and oilseeds supply chains Provide the industry with the best intelligence on global grain markets and communicate potential scenarios based on previous experience Seek ways to improve the competitiveness of supply chains Grow the market for UK cereals and oilseeds For current and potential export markets, help improve access, provide market intelligence and facilitate trade development Communicate the benefits of grain and oilseed products, highlighting health benefits, educating school children on where food comes from and countering negative views of our products AHDB Cereals & Oilseeds Business Plan Page 8 of 21

9 What s new? Cover crops and companion crops providing information that assists growers in their selection of these crops within the rotation, to maximise the benefits for weed control and soil improvment. Glyphosate resistance understanding the resistance threat posed by grass weeds and provide robust guidelines to support growers and the industry to retain the long-term effectiveness of glyphosate for weed control. Regional Structure establishing two new regions with Regional Managers, bringing AHDB's cereals and oilseeds regional structure in line with those of other key organisations such as the NFU, and replicating in the new regions the same level of activity with Monitor Farms and Arable Business Groups. egrain Passport the pilot programme designed to test the functionality of the IT structure will be completed by the start of the year. During 2016/17 different sectors of the supply chain will consider where the industry wishes to go next and this may lead to an application to AHDB to carry out further trial work or analysis. Big Data exploring the options available to collect data from levy payers on a much wider geographical basis to support our own development work, allow us to become reactive much faster and provide evidence to assist regulatory development. Ownership and protection of the data will continue to follow AHDB rules. AHDB Cereals & Oilseeds Business Plan Page 9 of 21

10 Strategic themes for 2016/17 and beyond AHDB Cereals & Oilseeds has four strategic themes that fall under AHDB s two priorities: Boost competitiveness and sustainability Grow market opportunities Improve technical efficiency Improve business efficiency Increase the competitiveness of UK cereals and oilseeds supply chains Grow the market for UK cereals and oilseeds Delivery of this plan is underpinned by communications and a continued focus on improving internal efficiency and providing the best possible value for money to levy payers. Improve technical efficiency AHDB will continue to implement the new AHDB Cereals & Oilseeds Research and Knowledge Exchange Strategy to fill gaps in current research and knowledge exchange. We will provide growers with world-class technical knowledge and skills to produce efficient and sustainable crops through a focused investment in applied research. This includes the establishment of new research projects following the new research calls on grain quality and pest management research, and continuing investment and exploitation of existing research areas. AHDB Cereals & Oilseeds will participate in the AHDB soils group and roll out a more regional Recommended Lists programme. There will be new focus on cover and companion crops to assist growers select the best crops within their rotations to achieve their needs, be they on weed control or soil improvement. There will also be a new focus on bio-stimulants, again to assist growers to select the most suitable bio-stimulant for the intended outcome. Key outcome Key Performance Indicator Provide the best possible value for money in From an evaluation of the R&D programme research investment against a 2010 baseline, deliver a 5:1 cost benefit per crop tonne from AHDB Cereals & Oilseeds-funded R&D AHDB Priority 1: Boost competitiveness and sustainability Improve business efficiency Improve business decision making, crop marketing and risk management within the cereals and oilseeds supply chain, through implementation of a regionally delivered business improvement programme, showcasing best practice in price risk management and benchmarking. The number of regions will be increased by two and the third phase of the Monitor Farm programme will be implemented adding the final 8 Monitor Farms to the 3 year rolling programme. The benefits of growers knowing their costs will continue to be promoted and the number of growers using CropBench+ will continue to be expanded. Key outcome Key Performance Indicator More growers making key business Number of growers using CropBench+ (target decisions supported by good information 500) about their business and the market. AHDB Priority 1: Boost competitiveness and sustainability Improve the competitiveness of UK cereals and oilseeds supply chains The AHDB Market Intelligence team, Brussels office and Research & KE managers will continue to monitor changes in UK and EU agricultural legislation and provide updates on regulatory and CAP policy changes affecting UK cereal and oilseeds businesses. AHDB Cereals & Oilseeds Business Plan Page 10 of 21

11 We will continue to horizon-scan the policy environment for upcoming issues that are likely to impact on AHDB organisational delivery and levy payer businesses and provide information to assist with managing those changes through AHDB s resilience work and the Opportunities and Threats Project in collaboration with AIC. We will also provide support to the industry in skills development and promotion of careers in agriculture through the Bright Crop initiative, support for PhDs and student bursaries and BASIS and NRoSOaccredited training events. The AHDB Sector Skills Initiative will also supply regional skills workshops and English Monitor Farm training events. Key outcome Key Performance Indicator Promote the long-term sustainability of the 5% increase in the proportion of research sector projects which include environmental improvement factors over the three-year period to 2019 AHDB Priority 1: Boost competitiveness and sustainability Grow the market for UK cereals and oilseeds We will maintain and encourage increased demand for UK cereal and oilseed grains and products through investment in contaminants and quality testing, promotion of cereals for export (especially China), development of education and consumer nutrition campaigns and accurate and timely market intelligence and business information. Key outcome Key Performance Indicator Maintain sustainable demand for UK cereal 10% increase in website visitors accessing key and oilseed products though clear information over the three-year period to 2019 communication or their benefits and value AHDB Priority 2: Grow market opportunities Communications AHDB Cereals & Oilseeds delivery is underpinned by our communications strategy. This ensures the industry is engaged with, and benefits from, the work of the sector through clear, timely and professional communications and knowledge transfer. This is supported by a focus on customer service, clear targeting of relevant information, strong relationships with stakeholders and a well-managed database. Key outcome Key Performance Indicator Ensure AHDB Cereals & Oilseeds work is Number of hectares of land represented at clearly communicated and widely valued by technical and business events and other the industry communications participants to increase by 5% over the three-year period to 2019 AHDB Priority 2: Grow market opportunities Improving performance Providing an efficient and value for money service to levy payers is key to AHDB Cereals & Oilseeds delivery. This is achieved through a programme of staff development and succession planning, increased cross-sector working and rigorous project evaluation and performance management. 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. AHDB Cereals & Oilseeds Business Plan Page 11 of 21

12 Activity plan AHDB Priority 1: Boost competitiveness and sustainability Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Improve technical efficiency on farm Delivery of applied Deliver 4-year research and Research commissioned in Delay in commissioning or research and strategic science projects. Participation in AHDB Soils Group and Horizon 2020 Platform knowledge exchange strategy Investing in Innovation to ensure delivery of research to match identified industry gaps. line with research calls timetable, in areas identified in R&KE strategy, including grain quality and pest management research. completion of projects. (Agritech) Managers. Coordination of AHDB crop nutrition research programmes Recommended Lists, online variety selection tool, contaminants monitoring, ISO9001 for RL procedures Animal feed sector strategy Drive forward updating RB209 with other AHDB sectors. Improve access to variety information by region and end use. Link data from RL trials to other AHDB activities and longterm crop monitoring and communicate some information in real time. Improve project assessment and approval process. Identify animal feed crop quality characteristics for inclusion in the Recommended Lists. Undertake technical research into animal feed quality and safety. Look at the role of cereals and oilseeds byproducts and co-products in animal feed rations. Improve engagement with animal feed businesses. Progress against agreed time plan. Twenty weather stations set up and operational at RL trial sites. Increased uptake of web hits and RL publications. ISO9001 Certificate obtained. Three research projects for animal feed commissioned. Variety characteristics suitable for feed identified in the RL. Analysis of by-products and co-products produced. Number of meetings and visits to animal feed levy payers. Lack of good quality research. Long-term funding required. Lack of available staff time. Insufficient resource for data handling. Suitable animal feed varieties not identified or not commercially viable, ie market price does not reflect crop value. Timetable for commissioning projects in place. Close monitoring of research project progress by Research & KE Actively engage with industry stakeholders and research community. Core funds set aside for Recommended Lists projects. Robust evaluation of systems and processes. Review RL project and consortium agreement. Review database and data handing requirements. Existing rigorous RL procedures applied to animal feed variety selection. Costs of production are below market price. Tools for measuring quality characteristics designed and tested. AHDB Cereals & Oilseeds Business Plan Page 12 of 21

13 Productivity, weed control and soil improvement Expand the regional business efficiency activities, including Monitor Farms, Arable Business Groups, Benchmarking and Price Risk Management programme Promote uptake of the new web-based CropBench system for Arable Business Groups and facilitate benchmarking groups Business Intelligence Delivery of egrain Passport pilot and agreement with industry on next steps Better understanding of the value of cover crops, companion crops and bio-stimulants. Improves on-farm business decision-making adding value to levy payer enterprises. Establish 2 new regions. Growers have the information they need to improve their performance and there is a cascade effect within the industry. Provide robust business intelligence and industry analysis to inform business decision-making and strategic planning. Improved efficiency, enhanced robustness of traceability, improved supply chain communication. Research programmes and outputs meeting grower needs. Improve business efficiency on farm Network of 24 Monitor Farms and 40 Arable Business Groups set up across the UK. Grower workshop attendance. Activity recognised in annual satisfaction survey. 500 farmers participating by 2017/18. Deliver business intelligence information at all events as part of the Business Efficiency programme. Feedback from industry. Successful delivery of pilot; feedback from users and industry. Full evaluation of pilot and agreement of industry for next stage, including possible further trials. Insufficient economic data for cover crops. Lack of technical data on bio-stimulants. Suitable Monitor Farms not identified. Low uptake of Arable Business Groups, grower workshops and benchmarking tools. Activity not recognised in annual satisfaction survey. System is overly complex. Results from system are not robust. Keeping pace with changes to cereals and oilseeds businesses, supply chains, and consumer demand. Industry engagement, support of pilot participants. Industry unable to agree way forward. Maintain existing standards for evidence based communications. Ensure benchmarking tools are grower-focused. Effective marketing of Arable Business Groups and grower workshops. Ongoing feedback sought internally and externally during the development process to make sure CropBench is seen to be accessible and easy to use. External validation and checking of data. Regular reviews of methodology. Closely monitor industry, media and consumer insight reports and maintain strong relationships with sector businesses. Good industry communication. Support of industry steering group. Steering Group and Board monitoring. AHDB Cereals & Oilseeds Business Plan Page 13 of 21

14 Analyse volatility and the long-term resilience of the UK cereals and oilseeds industry as part of a wider AHDB programme Market Information reports and economic analysis, including market trends, forecasts, policy impacts, supply chain strategies, daily market report and searchable index of articles Market update presentations, Price, Quality, Planting and Haulage surveys Supply and Demand Estimates (in partnership with Defra and the Market Intelligence Consultative Committee MICC) Increase the competitiveness of UK cereals and oilseeds supply chains Gap analysis completed and key risks identified. Volatility forum set up by AHDB to develop concepts and proposals to help levy payers manage volatility To provide more knowledge and evidence as to how volatility can be managed. Levy payers have access to unbiased, high quality market information and data and analysis that assists in profitable business decisions and supply chain relationships. Levy payers have access to high quality market intelligence which informs decision making and enables maximisation of crop values. Industry has access to robust information on cereals supply and demand. Development areas include improving stocks estimates, supplying further support and industry connectivity to Defra and exploring methods for estimating fed on farm usage. Circulation of weekly Market Report (10,300 min.), Prospects (>5,700). Build uptake of the newly launched Grain Market Daily to 1, market presentations delivered annually. Surveys are conducted and results are published. Increase visits to market information web pages. Balance sheets are published and updated during the season. Not all impacts of volatility are identified nor opportunities for developing resilience. Lack of experienced staff. Failure of databases, IT systems or website. Lack of experienced staff. Low survey response rates/results are not robust. Insufficient communication. Loss of data sources which inform estimates / loss of credibility if estimates are not accurate. Insufficient data at the regional level. Continuous monitoring of current and perceived future risks to UK cereals and oilseeds industry. Maintenance of Analyst development scheme and introduction of CPD system. Regular monitoring and updates from IT support combined with continued development of databases to make more robust. Introduce a quality assurance system for data collection and provision activities. Maintenance of Analyst Development Scheme and introduction of internal CPD System. Processes and sign off procedures in place. Prioritisation to most value adding activities. Format of balance sheet and methodology used continually reviewed through MICC. A risk-based analysis of information sources feeding into the balance sheets will be maintained. Introduce a quality assurance system for data collection and provision activities. AHDB Cereals & Oilseeds Business Plan Page 14 of 21

15 Increased uptake of the revamped Market Data Centre using new data visualisation software. Utilise the Opportunities and Threats Project data, work with the AHDB Brussels office, MI and R&KE Team to horizon scan to prepare industry for legislative changes Collection of Big Data Bright Crop Careers Project and Skills Development AHDB Skills Initiative AHDB PhD Programme MI staff and customers have greater access to timely market information through a more dynamic interface. Ensure the industry is environmentally sustainable and complies with relevant UK and EU legislation. Routes to collect data from a large number of levy payers of wide geographical spread. Encourage new entrants into the industry. Improve research, skills and knowledge within the industry. Provide regional based training and skills through the English Monitor Farm network and Risk Management programme. Encourage young scientists to take up agricultural research. New data analysis system is introduced. Use of market data centre replacement increases by 25% to 55,000 in the 12 months after launch. Update Roadmaps produced for greenhouse gas emissions and water. Analysis of changes in the policy environment. Ability to collect data effectively. Strategic partner in Bright Crop initiative. Level of funding available for PhDs, student bursaries and scholarships. 25 growers a year to attend each training event. PhD students remaining in agriculture after studentship. Lack of staff time and expertise to implement. Changes to UK/EU legislation. Cost of implementation and inability of some sectors to engage due to limited IT. Insufficient funding support available from 3rd parties for Bright Crop initiative. Suitable PhD projects not identified and commissioned. Low attendance at events. Failure to recruit good students. External expertise brought in to assist. Detailed project plan in place. Monitor changes in UK/EU environmental legislation and provide relevant advice to UK growers and processors. Good understanding of target grower groups. C&O funding will reduce but still have place on Steering Group for advice and governance. Advertisement of studentships and sponsorship schemes. Events are widely advertised and easily accessible to growers. Thorough evaluation of PhD proposals. AHDB Cereals & Oilseeds Business Plan Page 15 of 21

16 AHDB Priority 2: Grow market opportunities Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Growing the market Exports promotion and access Nutrition campaigns aimed at end consumer Education aimed at school teachers Maintain and increase overseas demand for UK cereals. Improve grower understanding of export markets, including through Meet the Exporter events. Remove trade barriers in conjunction with UK government. Maintain and increase demand for UK cereals through consumer campaigns and information on the nutritional value of grains Increase understanding and awareness of the grain chain and where food comes from with school-aged children. Maximise collaboration opportunities through the AHDB education strategy. Number of key markets accessible to UK trade Number of potential importers attending AHDB promotion events overseas and in the UK Uptake of nutrition messages and event resources. Hits to campaign webpages. Engagement with media. 15% increase in web visits to grainchain.com Uptake of educational resources and hits to educational websites Global competitiveness of UK grain. Grain quality and availability. UK government unable to provide sufficient support. Negative press and consumer perceptions of UK cereals and oilseeds. Changes to the education curriculum. Monitoring global cereals markets, availability and quality of UK grain. Consistent messages to growers about export markets. Close working relationship with UK government. Monitor media coverage and work closely with industry to provide factual, evidence-based information. Contribute to Department of Education curriculum reviews. AHDB Cereals & Oilseeds Business Plan Page 16 of 21

17 Delivery Principal activities Desired outcome(s) Measurement method(s) Key risks Key controls Communications Technical publications, knowledge transfer, supply chain events and agronomy events, AHDB Knowledge Exchange Group Increase uptake and use of AHDB Cereals & Oilseeds research information. Improve efficiency and productivity across the supply chain. Increased uptake of key website downloads and 5% increase in hectares represented at events. Positive score in annual satisfaction survey. Staff resources and time. Appropriate IT platforms and web development. Investment in website, IT and social media platforms. Fully resourced communications team Robust evaluation using Net Promoter Score Enhanced customer service Provide more digital access to information, including live streaming of events Analysis of customer database Building industry relationships Effective communications with supply chain and levy payers Improve quality of service delivery by ensuring all experiences of AHDB Cereals & Oilseeds are positive Meet growing demand for digital. Permit access to live events from farm/office. Targeted delivery of communications. Increase positive engagement with industry. Delivery of 2015/18 communications strategy, focusing on digital delivery, events, publications and press activity. Increased levy payer satisfaction, as measured by the annual survey Measured uptake of digital access. Increased uptake of key publications and downloads of key website information. Regular programme of industry visits and stakeholder meetings in place. Increased levy payer satisfaction, as measured by annual survey and Net Promoter Score. All AHDB Cereals & Oilseeds communications metrics continue to increase. Staff turnover Insufficient training Some growers prefer to stay with traditional communications channels. Data becomes out of date. Analysis incorrect or incomplete. Staff resources and time. Changing industry structure and personnel. Reputational risk. Loss of experienced staff. Review is inadequate or incomplete. criteria. Customer service guidelines embedded into staff induction process Customer Service Excellence Standard in place Ensure both types of grower have adequate access. Repeat market research exercise every 3-5 years. Fully resource business contacts programme. Monitor industry changes. Maintain positive AHDB Cereals & Oilseeds profile. Evidence base from updated market research. Consultation with Board and stakeholders. Continued CPD and training for staff. AHDB Cereals & Oilseeds Business Plan Page 17 of 21

18 Regional events Staff development and succession planning Project evaluation Cross-sector working Regionalise a programme of events to give local relevance to outputs. Ensure work is adequately resourced and staff have the necessary skills and expertise to deliver their roles. Projects undertaken are relevant, provide value for money, increase arable business profitability and are environmentally sustainable. Provide more cost-effective services to levy payers through collaborative working where relevant. Response to event feedback form with questions on local relevance. Insufficient knowledge of local situations. Improving performance across AHDB Number of training events per Staff turnover. staff member. Staff retention. Economic and environmental evaluation included in all R&KE proposals. Cost benefit analysis of projects included at planning stage. Number of cross-sector projects AHDB Cereals & Oilseeds involved in that add value to cereals and oilseeds levy payers. Staff resources and time taken to evaluate projects. AHDB resources available to implement and fund cross-sector projects. Use RM s to sense check information. Ensure succession planning in place for business-critical roles. Adequate staff resources are in place to evaluate projects. Evaluation embedded into every aspect of AHDB Cereals & Oilseeds activity. Set aside financing and staff resources for relevant AHDB projects. AHDB Cereals & Oilseeds Business Plan Page 18 of 21

19 Funding the plan Levy rates Levy rates are reviewed annually by the AHDB Cereals & Oilseeds Board. AHDB will not pursue a levy rate rise for 2016/17; however, as part of good corporate governance, the AHDB Cereals & Oilseeds Board will review levy rates annually and decide if there is a business case for proceeding to a formal industry consultation on revised rates. Cereals and oilseeds (UK) Levy rate 2015/16 (pence per tonne) Levy rate 2016/17 onwards (pence per tonne) Higher rate for late payment (pence per tonne) Cereal grower Cereal buyer Cereal processor (human and industrial) Cereal processor (feed) Oilseeds Summary of provisional proposed expenditure The budget is only provisional at this point because the estimate of income for 2016/19 is based on an AHDB planting survey run in November AHDB Cereals & Oilseeds Business Plan Page 19 of 21

20 PROVISIONAL 14/15 Actual 15/16 Forecast FULL YEAR '000 16/17 Budget 17/18 Budget 18/19 Budget 16/17 vs 15/16 INCOME Gross levy 12,507 12,437 11,950 11,950 11, Direct levy collection costs Net levy income 12,002 11,953 11,500 11,500 11, Fee and grant income External skills Commercial Services Non levy income Bad debt TOTAL NET INCOME 12,350 12,276 11,750 11,750 11, EXPENDITURE DIRECT R&D and Knowledge Exchange 5,179 5,723 5,600 5,600 5, External skills Trade development Export development Supply chain integration Market Intelligence 941 1,029 1,018 1,021 1, Communications 1,477 1,682 1,350 1,350 1, Commercial Services TOTAL DIRECT EXPENDITURE 9,822 10,583 10,058 10,071 10, SUPPORT Sector specific administration Human resources Facilities Finance and payroll Levy collection Procurement Information systems Main board/advisory Corporate communications and legal R&D Central support 1,110 1,132 1,143 1,166 1, TOTAL SUPPORT EXPENDITURE 1,725 1,675 1,683 1,686 1,686 8 TOTAL EXPENDITURE 11,547 12,258 11,741 11,757 11, Operating surplus/(deficit) NON OPERATING ITEMS Interest receivable Taxation Exceptional reorganisation expenditure Other non operating costs Net FRS17 entries (HGCA pension) TOTAL NON OPERATING ITEMS Retained surplus/(deficit) Opening reserves 2,812 3,458 3,375 3,323 3,254 Retained surplus/(deficit) Closing reserves 3,458 3,375 3,323 3,254 3,186 Opening pension reserves Pension movement 235 Closing pension reserves AHDB Cereals & Oilseeds Business Plan Page 20 of 21

21 AHDB Cereals & Oilseeds 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 Cereals & Oilseeds 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 Finishing Date Paul Temple Chair 31 March 2018 Ian Backhouse Grower Chair of MICC 31 March 2017 Jane Biss Processor 31 March 2018 Robert Lasseter Grower 31 March 2016 George Lawrie Grower Chair of R&KT Committee 31 March 2016 Howard Leland Processor 31 March 2018 Charles Matts Grower 31 March 2016 Andrew Moir Grower 31 March 2017 David Neal-Smith Independent 31 March 2017 James Price Grower Member of R&KT Committee 31 March 2017 Richard Whitlock Trade 31 March 2016 Robert King Maltster 31 March 2017 AHDB Cereals & Oilseeds also works closely with key stakeholders, government and devolved administrations and specialist committees dedicated to exports, research and knowledge transfer, and market intelligence to ensure the work undertaken clearly meets the needs of levy payers. AHDB Cereals & Oilseeds Business Plan Page 21 of 21