Levy options released

Oct 1, 2021

To change or not to change: The four options for the levy poll range from no change to a 25 per cent increase. Photo by Samantha Flight

The independent committee reviewing the dairy service levy says an increase in the levy is in the best long-term interests of the dairy industry.

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The Levy Poll Advisory Committee’s decision included setting the options for the levy poll and recommending a 20 per cent increase in the levy.

In July, the committee recommended a poll be conducted of all dairy farmers to determine the future level of the dairy service levy.

Following this recommendation, the committee was required to determine the voting options which will go on the ballot to be voted on in March 2022.

The four levy options to be presented in the levy poll are:

No change to the levy (status quo).
An increase of 15 per cent.
An increase of 20 per cent (recommended by the committee).
An increase of 25 per cent.

Committee chair Ron Storey said in making its decision, the committee took into consideration many factors including that there had been no change to the levy since 2012, CPI increases in that time, financial projections of a continuing decline in reserves, future commitments required for the dairy industry to succeed, as well as analysis of the benefits of the levy investment for dairy farmers.

“After detailed consideration of these factors and farmer feedback, the committee determined that a levy increase of 20 per cent is in the best long-term interests of the dairy industry,” Mr Storey said.

Dairy Australia managing director David Nation said the levy was an investment “made by farmers to deliver value back to their own businesses”.

“We have a track record of delivering value through investments and partnerships that are not possible to make as individual farmers,” Dr Nation said.

He said Dairy Australia had four priority areas for increased investment to tackle labour shortages, enhance the regional service offering to farmers, address high priority issues relating to climate, and bolster policy support.

To view the full report, visit: dairylevyreview.com.au