Levy increase safeguards dairy future

Wednesday 09 November 2011 | From Dairy Australia

The industry’s peak bodies have endorsed the recommended 10 per cent increase in the dairy service levy in next year’s Dairy Poll.

ADIC, ADF and ADPF were all represented on the Dairy Poll Advisory Committee, led by ADIC chairman and ADF president Chris Griffin, which conducted a review of industry needs and the levy spend by Dairy Australia as outlined in its 5-Year Strategic Plan.

Mr Griffin said it was essential to continue this scale of investment to ensure the level of services and RD&E currently provided by Dairy Australia continues into the future.

The 24-member committee consisted of representatives from all dairying regions and sectors from across the entire national dairy industry.

“Over the past six months we considered a range of voting options, based on the level of funding needed to deliver programs and services in the industry agreed Strategic Plan, and we determined that an increase in the levy was required to execute the plan,” Mr Griffin said.

The committee recommended two options, a 15% increase, which would allow Dairy Australia to execute the plan and provide significant scope to fund new activities and meet unforeseen challenges, and a 10% increase, which would allow the company to execute the plan, which is essentially a continuation of the current level of services and RD&E, but limits its ability to take on new activities. The third option for zero levy is required by legislation.

“Since 1997 there has not been a levy increase. In that time the Consumer Price Index has risen by 36%, therefore a 10% in the levy is well below the corresponding CPI increase.

“Keeping the levy at the current rate would not be in the industry’s best interests for the future and the committee determined that an increase in the levy was the responsible way forward,” Mr Griffin said.

Dairy Poll 2012 voting will open in early February 2012, when farmers will receive their voting pack containing a ballot paper, and closes on March 16, 2012. Dairy farmers will receive their voting entitlements next month.

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For further information please contact:
Felicity Gallagher
Dairy Australia External Communications Manager
Phone: (03) 9694 3894 Mobile: 0417 540 059 Email: fgallagher@dairyaustralia.com.au