Cattle Australia Pushes for Levy Review at Cattle Connect Conference

Cattle Australia president Garry Edwards addressing the Cattle Connect conference in Dalby, Qld.

During this year’s Cattle Connect conference in Dalby, Queensland, Cattle Australia laid out a comprehensive case for a major review of Australia’s cattle transaction levy. President Garry Edwards emphasized that the need for this review stems from changing industry structures, rising costs, and evolving expectations since the last review nearly two decades ago.

Improving Profitability, Productivity, and Sustainability

Edwards stressed that Cattle Australia’s primary role is to protect the interests of levy payers by focusing on enhancing profitability, productivity, and sustainability across the industry. “If we don’t use the levy to focus on matters that increase the profitability of the levy producer, we are wasting our time,” he stated emphatically.

The current levy of $5 per head allocates funds as follows: 13 cents to Animal Health Australia, 29 cents to the National Residue Testing process, $3.66 to Meat & Livestock Australia (MLA) for marketing, and 92 cents for research and development. Edwards indicated that a thorough review is necessary to determine how efficiently these funds are being utilized.

The Case for Change

Edwards noted that significant changes have occurred over the past 19 years, including an increase in the Gross Value of Production (GVP) from $7.4 billion to $20 billion. He pointed out that inflation has surged by 62%, raising questions about the relevancy of the current funding model.

“I don’t think there’s anyone in the room that would still be running a business model based on a cost structure from 19 years ago,” he remarked, emphasizing the urgency to reassess financial strategies in the industry.

A Consultation for the Future

Edwards explained that Cattle Australia would spearhead the review process, which includes extensive consultations with producers nationwide. He clarified that the objective is not to increase the levy, but to assess and optimize its allocation and utilization.

Addressing Unintended Consequences

“There are unintended consequences with the current levy structure that need addressing,” he noted. Presently, the rigidity of the fixed dollar form of the levy raises barriers to redirect funds toward pressing needs like emergency animal disease responses and marketing efforts.

Advocacy and Representation

The topic of industry advocacy was also a focal point during discussions. Edwards confirmed that any review would consider whether adjustments should be made to allow for advocacy-related expenditures. He stated, “If you don’t think you should have representation in a $20 billion industry, then I urge you to rethink.”

The Path Ahead

In closing, Edwards mentioned that the review would ultimately culminate in a report and recommendations presented to both the Minister and Shadow Minister. The feedback gathered from producers will guide the direction and priorities of Cattle Australia moving forward.

Stay tuned for more updates from the Cattle Connect conference as we continue to cover important discussions and developments in the cattle industry.