February 17, 2005

 

Australia raises cattle levy

 

Australian beef producers can expect a call to increase their contribution towards the country's beef promotion within weeks.

 

The industry committee looking at beef marketing programs should report in March that a rise in the cattle transaction levy is warranted.

 

The present levy of A$3.50 a head has not changed in nine years. In 2002, Australian cattle producers rejected a proposal to increase their contribution to the research and promotion transaction levy by 50 cents.

 

Commmittee chairman and Queensland beef producer Don McDonald said details of proposed changes would be released for producer comment after a final meeting in March.

 

"I think there will be an increase recommended, but the ultimate decision will be made by producers," he said.

 

Meat and Livestock Australia (MLA) shareholders will vote on any proposed changes which then must be accepted by Federal Agriculture Minister Warren Truss.

"All we are doing is making a recommendation, and then it will be up to industry to decide whether it is justified or not," Mr McDonald said.

 

The 10-member steering committee includes representatives from the CCA, the Australian Lot Feeders Association, the Australian Meat Industry Council, three independent beef producers and one MLA board representative.

 

MLA managing director Mark Spurr said the Australian beef industry was facing a number of challenges, particularly in the global market.

 

These included US re-entry into Japan, the threat of Brazil to produce large quantities of beef at a low cost, the emergence of Indian buffalo beef and maintaining Australia's beef image as 'clean and green' in a global market which had suffered from several health safety scares.

 

"MLA has been and will continue to be right under the microscope because at the end of the day, if more funding is needed, it has to be spent efficiently," Mr Spurr said.

"It has been a long time since we had a levy increase. MLA certainly believes that the money has been well spent in terms of giving real value and improving the perception of beef and the consumption of beef.

 

"And the results are there - a 50 per cent increase (in consumption) over the last five years."