May 23, 2012

The Australian pork industry denies claims of increase in the Australian Pig Slaughter Levy and blamed the report on media misrepresentation.

APL CEO, Andrew Spencer, said "the increase to the pig slaughter levy has been completely misreported and is not a "bacon tax'". "Furthermore, consumers need not stress. This levy will not change the retail price of pork and pork products."

The Pig Slaughter Levy is collected from producers to support the peak industry body Australian Pork Limited (APL) in undertaking Marketing, Research and Development (R&D) and Policy activities on behalf of the industry.

"This slaughter levy increase is revenue neutral from the government's perspective," Mr Spencer said. "The listing of the levy increase sought by the pork industry in the Budget Papers is a mere formality which in no way represents a tax on bacon. Whilst the government does collect the levy on industry's behalf, it passes it straight through to APL making it a budget neutral item."

Currently the levy received by APL, collected via the Federal Government, is split for R&D and marketing. The increase to the levy, reported in the budget, is only relevant for the marketing portion. This increase will occur in three 30 cent tranches over four years from July 1, 2012.

In November 2011, Australian levy paying pork producers voted to endorse the proposal to increase the pig slaughter levy and the Federal Government is in the process of approving this increase following the proposal being submitted in January of this year.