Call for Review of National Red Meat Levies Gains Momentum

Key production sectors within the red meat industry have united in support of a comprehensive review of national red meat levies. Organizations such as the Australian Lot Feeders Association (ALFA) and Sheep Producers Australia have expressed their commitment to engage in this review alongside fellow industry bodies.

Recently, Cattle Australia announced plans to consult with levy payers regarding the appropriateness of the $5 per head Cattle Transaction Levy (CTL) for the year 2025, noting that the last review occurred back in 2006. This levy, which applies to all cattle sales, is crucial in funding research, marketing, and various industry activities that contribute to the growth and sustainability of the sector.

Projected annual levy revenue for Meat & Livestock Australia from different producer levy streams for fiscal years 2026 to 2030. Source: MLA Five Year Plan to 2030.

ALFA has highlighted the need for a collaborative review of the Cattle Transaction Levy, particularly the grain-fed portion, given that it has remained unchanged for nearly two decades. ALFA President Grant Garey emphasized the importance of assessing whether the current levy remains adequate in light of evolving industry conditions.

“Our operating environment has transformed significantly over the past 19 years,” Garey stated in a written response to Beef Central. “It’s critical to evaluate whether the existing levy settings are still effective for both present and future challenges.”

He noted that the levy-funded bodies, including Meat & Livestock Australia (MLA), Animal Health Australia (AHA), and the National Residue Survey (NRS), provide valuable services. Ensuring that their activities continue to respond to industry needs is paramount.

In tandem with ALFA, Sheep Producers Australia has also voiced its support for a levy review, acknowledging the potential benefits for the sheep industry as well. Bonnie Skinner, CEO of Sheep Producers Australia, stated, “It’s crucial to ensure that we’re investing appropriately in the most relevant areas for our producers.”

Bonnie Skinner

Michael Crowley, Managing Director of Meat & Livestock Australia, also confirmed the organization’s willingness to support the review process. “Any levy evaluation should be driven by representative organizations,” he noted, adding that MLA is prepared to assist in the review led by Cattle Australia.

The collective push for this review signifies a crucial step towards enhancing the effectiveness and sustainability of the red meat industry, ensuring that stakeholders are better served in the changing landscape of agriculture.