Federated Farmers meat and fibre spokesman Miles Anderson said while the proposed 10c a head lift in sheep meat and 80c a head increase in beef levies isn’t big, farmers will be looking at B+LNZ’s performance in the targeted spending areas.
“The increase in the levy will not be opposed in a general sense but there will certainly be an expectation on the part of B+LNZ and they will be scrutinised a lot more.”
The average sheep and beef farmer pays well in excess of $1000 in levies and the increase will cost them an extra $260 a year and the average dairy farm $55.
B+LNZ chairman Andrew Morrison said the additional levies will be invested in the international rollout of the Taste Pure Nature origin brand and the Red Meat Story, help the sector lift its environmental performance and reputation, better tell farming’s story and strengthen the organisation’s capability to address biosecurity risks.
Given the scale and speed of change a modest levy increase is necessary to accelerate those programmes.
Anderson recently attended a farmer meeting in Fairlie and said while there was some opposition to a higher levy, most were not opposed.
“It seems farmers are prepared to pay for it so long as the money goes towards achieving the goals set out in the medium term plan.”
The demise of the wool industry since growers stopped paying levies was evidence of the alternative.
“We may not like what is proposed but the alternative could be worse.”
The proposed increase will not be used to fund the beef sector’s share of Mycoplasma bovis costs but Morrison said its response to the disease has incurred extra costs.
B+LNZ has targeted the United States and China for its initial rollout of the Taste Pure Nature brand.
“The additional funds will be used to support greater targeted promotion in key markets such as the US and China to capture more value for farmers before alternative proteins gain traction and our competitors cement their positions,” Morrison said.
There is also a risk of significant regulatory change in environmental management and farmers need information to influence Government policy.
“This investment will give farmers the tools to make onfarm changes, measure environmental progress and provide evidence for telling their story.”
B+LNZ chief executive Sam McIvor said the organisation saved $1.4 million over the last two years by prioritising resources.
The proposed levy hike fell within the range supported by farmers under the Commodity Levies Act referendum in 2015 but will be consulted on and, if adopted, the change will take effect from 1 October.
