TB slaughter levy for dairy increases due to market conditions

Photo / ODT Files

The differential slaughter levy rate for dairy cattle is set to rise.

Ospri disease management general manager Danny Templeman said the levy was collected to support funding of the TBfree programme on behalf of the beef and dairy industries.

The funding shares might change annually based on shifts in the relative size and value of each industry, he said.

Each year the levy rates were reviewed under the TBfree Funders Agreement to ensure overall funding of the TBfree programme aligned with the agreed funding levels.

Levies were adjusted to reflect the latest industry farm gate values and slaughter volumes for both dairy and beef stock.

"This year there is a need for a change in the levy rate for dairy stock, which is being driven by market conditions," Templeman said.

"The reason for the change in dairy cattle slaughter levies is the reduced slaughter volumes we're seeing, combined with farm gate price increases for dairy this year."

The new levy rates from October 1 this year are:

• Dairy slaughter levy for dairy cattle rises from $9 per head to $10.50 per head

• Cattle slaughter levy for beef animals remains unchanged at $5.50 per head

• Live export levy remains unchanged at $11.50

Adjustments to the levy were advised to DairyNZ and Beef + Lamb New Zealand, the industry levy bodies consulted as part of the TBfree Funders Agreement.

Changes were made in line with the annual funding level specified.