Friday, March 29, 2024

Levy good for the industry

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The work funded by the milksolids levy often flies under the radar, DairyNZ chairman John Luxton says.
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DairyNZ puts $51 million of the levy into research and development projects run by 40 other organisations in the sector. As well as expected funding in areas such as environmental sustainability, biosecurity, productivity, innovation and animal welfare, DairyNZ also spends the levy on education and promoting the industry. DairyNZ’s environmental investment programme is worth $11m, which includes catchment engagement projects as well as environmental studies in partnership with councils.

For example, it spends more than $400,000 on sponsoring industry events and conferences to keep improving the skills of the entire industry. Increasing people skills helped ensure New Zealand maintained a sustainable, strong competitive edge in the global dairy industry, Luxton said.

DairyNZ also distributes $7.9m towards education through grants towards programmes such as the Nuffield Farming Scholarship and the Kellogg Rural Leaders Programme. That includes $100,000 for the Dairy Women’s Network Wellness and Wellbeing programme.

The industry strategy guides where DairyNZ distributes the levy, by finding gaps in the industry, then funding organisations which could offer the greatest influence, he said.

“As an industry we are funding a very large number of specific projects. We are looking at each of those levers we think we can shift to improve the competitiveness and the sustainability of the industry.”

Maintaining an industry-good body to steer the industry forward was absolutely vital, Luxton said.

“If we didn’t, there would be some very big challenges that would be facing the industry that would need research and would have to be paid for by dairy companies or other sources if it wasn’t for the industry-good organisation.

“So I think it’s very important for the industry that we do maintain that collective response to the challenges and the opportunities that we as an industry face.”

The NZ dairy industry had increasing international competition as well as challenges involving sustainability, and it had to keep improving.

“One of the advantages we’ve had as an industry is we are internationally competitive, which means we have to keep up research and development, and up-skilling people is absolutely fundamental to remaining competitive.”

Farmers have until the end of May to vote for the levy, which is currently 3.6c/kg milksolids.

DairyNZ levy distribution can be viewed in its 2013 annual report. Visit www.dairynz.co.nz

http://www.dairynz.co.nz/file/fileid/47955

 

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