Dairy Insight Reconfirms Levy Rate

Dairy Insight Reconfirms Levy Rate

Dairy InSight today reconfirmed that the industry good levy rate for the 2003/04 dairy season is 3.4 cents per kilogram of milksolids. This follows questions from dairy farmers confused by previous information from Fonterra that the rate would be three cents.

“In the lead up to the industry vote in May last year we proposed a 3.4 cents per kilogram milksolids rate, which included a 0.4 cents increase for the Animal Health Board levy for Tb eradication programme. This rate was confirmed by our board in April of this year following Dairy InSight receiving the final tick from the Minister of Agriculture,” says Peter Bodeker, Chief Executive of Dairy InSight.

“When voting for the levy last year, dairy farmers also voted on a maximum levy of 4.3 cents over the next five years. This was supported by a two thirds majority of dairy farmers and we are well within that maximum.

“Dairy farmers will be receiving a letter this week from Dairy InSight clarifying this particular point,” says Mr Bodeker. “We are urging dairy farmers to view the levy as an investment in their industry.

Funding of the Tb eradication programme has now been decided. The cost of eradication is shared with other pastoral industries and Government, with the dairy industry share rising over the next three years from $6.7 million to $15.6 million.

Dairy InSight took this possible contingency into account when it set the levy rate, and as a result the decision on the contribution to Tb eradication will not affect the levy amount in the current year.

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