SHOULD Australia’s grassfed cattle industry have the ability to redirect levy funding between fixed investment streams as new challenges emerge, rather than waiting years for the next formal levy review?
And, given the last major review was conducted 20 years ago when the business and trade environment were very different to today, should the industry move to conducting formal levy reviews at fixed periods such as every five or 10 years?
These are among some of the key structural questions being put to producers in a consultation process involving an online survey and face-to-face meetings as part of the national Cattle Transaction Levy Review currently underway.
The review is being conducted by a committee appointed by Cattle Australia, chaired by CA director Bryce Camm and comprising fellow directors Elke Cleverdon and Garry Edwards, regional producer representatives Hugh Nivison, Harry Youngman, Rob Atkinson, Julie McDonald and Dean Ryan and independent members Colin Hunter and Jason Strong.
Speaking at the first producer consultation meetings held in Central Queensland last week, Cattle Australia chief executive Will Evans said one of the review’s key principles was whether industry should have more flexibility to respond to emerging priorities by reallocating levy expenditure between existing funding streams.
Mr Evans said the committee had examined how levy income had historically been invested during major industry events and whether levy flows had ever been adjusted in response to specific pressures or challenges.
“What we found is that historically when there’s been an issue emerge in the industry, the levy investments alongside those things never changed and were never adjusted,” he said.
The current legislation governing how levies can be used is “incredibly prescriptive”, he said, which was one reason why it had been difficult to adjust levy flows in accordance to changing needs in the past.
One of the questions put to producers last week was whether they would be comfortable supporting a system where levy funds could be temporarily redirected between existing investment areas when exceptional circumstances arose, without changing the overall levy amount.
“Providing there isn’t a lift at the top cap (currently $5/head), under a certain set of circumstances where there is a reason, would you feel comfortable with us being able to make changes to this?”
He stressed any future changes would still require consultation with levy payers and may involve a producer vote at a special Meat & Livestock Australia general meeting to ratify.
“We’re not going to be able to with just the stroke of a pen reallocate funding.”
As an example, Mr Evans pointed to the alarming detection of foot-and-mouth disease and lumpy skin disease in Indonesia in 2022, where both infectious diseases have now established major footholds.
At the time, Animal Health Australia, which is tasked with preparing the industry for an emergency disease outbreak, was asked to increase scenario planning and training and education.
However, because AHA had a fixed budget for that 12 month period, revenue was not available for that task.
“Now to give you an insight into what we’re talking about, if we could have at that point in time said let’s move 10 cents out of R&D or out of marketing and put that into AHA for 12 months, that’s about $1.5 million dollars,” Mr Evans said.
“Now, not a huge amount of money, but what it means is we don’t have to wait around for the government or anybody else to intervene. We as an industry move first.”
Mr Evans said the review was asking producers whether greater flexibility in the system is something that would be desirable.
The review is also asking for producers to nominate if there other areas of levy investment that should receive levy funding outside the existing streams of research, marketing, biosecurity and residue survey testing.
“We want to get your views on whether there are additional things that we should be considering that aren’t currently being considered,” he said.
Cattle Transaction Levy review producer meeting schedule
Further meeting details and registration information will be made available as the review progresses.
Meetings already held
- Monday 13 July – Kimberley Station, Moranbah
- Tuesday 14 July – Clarke Creek Community Hall, Clarke Creek
- Tuesday 14 July – Theodore Hotel, Theodore
- Wednesday 15 July – Bauhinia Community Hall, Bauhinia
- Wednesday 15 July – Buckland Rec Club, Buckland
- Monday 20 July 2 pm – Naracoorte, Bayview Sale Complex
- Tuesday 21 July 9 am – Mount Gambier, The Barn
- Tuesday 21 July 3 pm – Mortlake, Banquet Angus Sale Complex
- Wednesday 22 July 8:30 am- Ballarat, Selkirk Stadium
- Wednesday 22 July 3:30 pm – Launceston, Hotel Grand Chancellor
- Thursday 23 July 10:30 am – Sale, Maffco Brewery
Meetings to come:
- Tuesday 28 July 9 am – Bunbury, Vat 2 – Register Here
- Tuesday 28 July 4 pm – Perth, Ingot Hotel – Register Here
- Thursday 30 July – Holbrook, TBC
- Thursday 30 July – Yass, TBC
- Monday 3 August 6 pm – Malanda, Malanda Hotel Ballroom – Register Here
- Tuesday 4 August 10 am – Conjuboy, Oasis Road House – Register Here
- Tuesday 4 August 6 pm – Charters Towers, Charters Towers RSL – Register Here
- Friday 7 August 9:30 am – Brisbane, Rydges Hotel – Register Here
- Monday 10 August – Moree, Weebollabolla Sale Complex
- Tuesday 11 August – Glen Innes, Glen Innes RSL
- Tuesday 11 August – Walcha, Walcha Bowling Club
- Wednesday 12 August – Tamworth, 3R Angus
- Thursday 13 August – Dubbo, Polldale Sale Complex
- Thursday 13 August – Orange, TBC
- Monday 17 August 11 am – Cloncurry, Concurry Precinct
- Monday 17 August 5 pm – Longreach, Birdcage Hotel
- Tuesday 18 August 12 noon – Augathella, Bowls Club
- Tuesday 18 August – Roma, The Club Hotel
- Monday 24 August – Alice Springs, Arid Zone Research station
- Tuesday 25 August – Tennant Creek, Barkly Business Hub
- Thursday 27 August – Katherine, Reaserch Station
- Friday 28 August – Darwin, John England Building
For more meeting details and registration contact info@cattleaustralia.com.au
If you want what Mr Evans says, flexibility, then the industry has to be privatised. Levy funds are a federal government tax and legally it is consolidated revenue only to be spent at the direction of a Minister and a Cabinet Minute, not the forced taxpayers as that is what the CTL payers are making decisions. What Mr Evans is asking is not possible without a complete restructure and a privately funded corporation instead of MLA; this is a reality.