August 4, 2011


Australian pork industry proposes pig slaughter levy increment



Australia's pork sector has suggested a AUD0.90 (US$0.96) raise in the marketing aspect of the Pig Industry Slaughter Levy.


Australian Pork Limited (APL) has embarked on a series of national producer meetings to discuss the proposal.


APL CEO Andrew Spencer said the industry had not had an increase in the Pig Slaughter Levy since 1994.


"Realistically, when you look at inflation significantly diminishing spending power, reduced slaughters, coupled with increasing regulatory and compliance obligations on the industry, a levy increase seems an appropriate action to take," Spencer said.


"Future industry challenges are lining up and it would be detrimental for the industry to abandon the positive work that has been achieved to date.


APL receives AUD1.35 (US$1.45) per pig slaughtered for marketing and AUD1 (US$1.07) per pig slaughtered for research and development (R&D).


Additionally, the R&D levy is matched dollar for dollar by Commonwealth Matching Funds from the Federal Government.


In respect to the proposed levy increase, the APL board has recommended, as a more affordable approach, that the increase occur over three trenches.


The first increase of AUD0.30 (US$0.32) would come into affect by July 1, 2012.


The second wave of an additional AUD0.30 (US$0.32) would take effect by July 1, 2014, and then the third and final phase of the increase by July 1, 2016.


The total AUD0.90 (US$0.96) increase will take the new marketing Pig Slaughter Levy to AUD2.25 (US$2.41), which will then make the total levy AUD3.25 (US$3.48) per pig slaughtered.

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