Frequently asked questions
When is the Dairy Poll?
Farmers will be sent advice of their voting entitlements in early December. The ballot papers will be sent in early February when the poll opens. The poll closes on the 16th of March 2012 with counting to commence on the 19th of March 2012.
Why do we need a Dairy Poll?
The federal legislation governing Dairy Australia requires a levy poll to be conducted at least every five years. The last Dairy Poll was held in March 2007.
Who is managing the Dairy Poll?
The Levy Poll process is led by the Australian Dairy Industry Council as this is an industry wide matter. Strategic direction is provided by the Dairy Levy Poll Advisory Committee, which comprises 20 members who are representative of each dairy region and sector, and chaired by ADF President Chris Griffin. This group guides/directs the Levy Poll working group in the implementation of the key components of the levy poll process.
What is the current levy rate?
Levies are raised on the fat and protein content of milk. The current rate is approximately $0.0032 per litre of milk. This equates to approximately $3200 per year for a farm producing 1 million litres of milk.
Is there a need to change it?
The current levy rate has not increased since 1997. A failure to fund the current level and scope of services at the 2012 levy poll would mean a 15 year period without an increase by the time of the next levy poll, expected to be in 2017. A 10 percent increase in the current levy rate is considered necessary by the Dairy Levy Poll Advisory Committee to fund the current level of scope of services provided to the industry.
How much money is collected from the Levy?
Dairy Australia is primarily funded by the Dairy Service Levy, which amounts to approximately $30.6 million per year. The Federal Government provides matching payments (an average $17 million per year for the past eight years) for expenditure on eligible research and development. An independent assessment has estimated that farmers receive a benefit of $3 for each $1 invested by Dairy Australia.
What does the Levy fund?
As the national services body for the Australian dairy industry, Dairy Australia acts as the collective investment arm, investing in essential R&D, extension and industry services that individual farmers and dairy companies cannot efficiently undertake themselves. The largest total investment is in direct on-farm activities to improve margins and productivity in a number of areas including pasture productivity, cow productivity, management of grains, farm systems and people. In addition to these pre-farm gate investments there are major investments in post farm gate areas such as trade reform, improvements to processing, and the pursuit of high value markets and products. Detailed information on the programs and services funded by your levy payments can be found at www.dairyaustralia.com.au.
What are the proposed Levy Poll options?
The industry led Dairy Levy Poll Advisory Committee is in favour of providing three options, as was the case in the 2007 Levy Poll.
Option A: a 15 percent increase from the current $0.0032 per litre to $0.00368 per litre, which equates to an increase of about $480 per 1 million litres of milk produced per year.
Option B: a 10 percent increase from the current $0.0032 per litre to $0.00352 per litre, which equates to an increase of about $320 per 1 million litres of milk produced per year. This is the recommended option.
Option C: to have a zero levy, which means Dairy Australia will cease to exist and there would be no mechanism for the delivery of the Australian Government’s matching funds.
Option Proposed rate Approx ($) annual increase per 1 million litres
- Option A. $0.00368 $ 480
- Option B. $0.00352 $ 320 Recommended option
- Option C. No levy – No Dairy Australia No levy – No Dairy Australia
Which is the industry recommended option?
The industry has recommended option B, a 10 percent increase from the current $0.0032 per litre to $0.00352 per litre which equates to an increase of $320 per year for a farm producing 1 million litres of milk. This Option will allow Dairy Australia to execute its 5-Year Strategic Plan for achieving the industry’s objectives with limited contingency funding for new activities. However, this would leave little funding available for new activities or dealing with unforeseen industry challenges. This recommendation is fully supported by Australian Dairy Farmers Ltd (representing dairy farmers) and the Australian Dairy Products Federation (representing manufacturers and processors).
Why is there no option to leave the current levy rate unchanged?
At the last levy poll in 2007, climatic and financial conditions were such that the Industry’s Levy Poll Advisory Committee recommended that the levy remain at its existing level. That recommendation acknowledged that the lower level of funding would be reassessed after conditions improved and milk production stabilised. There has not been any increase in the levy rate since 1997 while the Consumer Price Index has risen by more than 36 per cent. The effect of inflation over the years has significantly eroded the buying power of levy funds raised. Keeping the levy at the same rate for 20 years is not sustainable.
Is voting compulsory?
Voting is not compulsory but the poll represents every dairy farmer’s opportunity to have a say on the future of the industry. A dairy farmer does not have to be a member of Dairy Australia to vote. Anybody who contributed to the Dairy Service Levy in the 2010-11 financial year is eligible to vote. Voting entitlements will be posted to Levy Payers in December 2011.
How do I vote?
A ballot paper and an Information Memorandum will be posted to Levy Payers in early February 2012. To submit a valid vote, the ballot paper must be completed in accordance with the voting instructions, and posted or faxed to the Returning Officer. This must be received no later than close of business on Friday, 16 March 2012.
Where can I get more information?
Call: Stuart Madden at Dairy Australia on 03 9694 3896 or mobile: 0408 557 656, or email smadden@dairyaustralia.com.au
Attend: Roadshows will be held in each dairy region early in 2012. Locations will be advertised in local newspapers and will be available on the Dairy Poll website.