Levies imposed on farm produce could be used to fund a logo showing food meets British standards.

The Agriculture and Horticulture Development Board (AHDB) agreed to provide a financial contribution to promote the Red Tractor logo on Friday (23 January).

The board aims to help improve the efficiency and competitiveness of various agriculture and horticulture sectors within the UK.

It is now pursuing European state aid approval for the funding, which is a prerequisite for any investment decision on consumer promotion activity.

The board represents six sectors: English cattle, sheep and pigs British milk, potatoes and horticulture, and UK cereals and oilseeds.

Its decision followed an industry consultation which showed that most sectors wanted to use levy funds to help promote the Red Tractor logo.

The logo is overseen by Assured Food Standards (AFS).

AHDB chairman John Bridge said: “Following our decision, there is a lot of detail to be sorted with AFS, the NFU and across our own sector divisions.

“One of the matters still to be ironed out is the nature of the contribution to be delivered from each sector.”

The state aid clearance process is expected to be completed by late 2009.