Is the $5/head cattle levy still doing its job? Industry review begins

Cattle Australia has called for the review of the $5 per head grassfed levy collected at point of sale, saying the move was essential to ensure that the funding system was still appropriate for the modern challenges facing the industry.

Cattle Australia Chief Executive, Dr Chris Parker, said the national peak body representing the Australia’s 52,000 grass-fed cattle levy payers would work with other peak industry bodies in taking a holistic view of the red meat production industry, its future needs and appropriate support from the levy system.

“The first part of this review process is to get the work done on this case," Dr Parker said.

"There will be wide consultation on both the case for and against change, and we must of course meet the levy principles set out by Federal Government,

“This will not be a quick fix. We anticipate the full review process and consultation will take at least two years, but we must start now if we are to ensure that our industry stays in front of the game and maintains its position as a reliable source of safe, nutritious protein.”

For the grass fed industry, a levy of $5 per head is collected at point of sale, with these funds used for research, development and marketing initiatives by Meat and Livestock Australia. The research and development component attracts a matching Commonwealth co-contribution. Components of the levy also go to support Animal Health Australia and the National Residue Survey.

Meat & Livestock Australia Managing Director Michael Crowley said MLA would support peak bodies with information, analysis and research to inform and assist their decision making as required.

He clarified it was the responsibility of peak bodies to initiate and lead a review of transaction levies.

The final decision to alter the levy must be determined by levy payers. It's understood that the MLA Annual General Meeting would be the appropriate event for industry to vote on the issue, however this would be a couple of years away. 

The cattle transaction levy was set at its current rate in 2006. It was reviewed in 2009 and determined to be effective and should remain at its current rate. It has not been reviewed since that time.

Sheep research and development and marketing levies have not been varied since MLA was formed.