The Dairy Levy Poll Advisory Committee (the Committee) has unanimously decided not to request a levy poll.
The decision has been made after a number of meetings where the Committee discussed a submission from Australian Dairy Farmers (ADF) and Dairy Australia (DA) and the issues, challenges and opportunities facing the dairy industry.
The joint submission canvassed various options regarding the levy and the advantages and disadvantages of each option, with a final recommendation that there be no change.
The Chair of the Committee, John Lawrenson, said the Committee had been mindful of the current state of the dairy industry and the impact prices are having on farm profitability.
“In considering the level of the levy, the Committee was cognisant of the need to ensure that an appropriate level of funding is available to Dairy Australia to support the current and future long term research, development and extension strategy for the dairy industry which is critical to improving farm productivity.”
“The Committee was conscious of the impact that falling farmgate prices and milk production will have on DA’s future income – both the levy and the matching Federal government funding,” Mr. Lawrenson said.
The Committee considered Dairy Australia’s 3-year Strategic Plan (2016/17 to 2018/19) and the anticipated benefits from the projected research, development and extension (RD&E) investment during that period.
The Committee also reviewed the services that Dairy Australia provides to dairy levy payers, in particular, the raft of programs it delivers that address the key needs of the industry in accordance with its remit, in relation to farm profitability/productivity, skills development of those working in the dairy industry, and programs aimed at protecting the industry’s long term licence to operate.
The Committee also took into account the evidence that Dairy Australia’s investment creates spin off benefits for rural Australia flowing from its investment and that the investment also leverages the effectiveness of the levy in generating further funds in excess of $20M from government (both State and Federal) and other sources.