It has been set at 2.4 cents a kilogram of milksolids. Last season the rate was 2.9 cents/kg MS.
“The levy reduction is good news for dairy farmers. It was supposed to reduce as things improved and we started getting on top of things so it’s reassuring to see that’s what is happening,” farmer and Rural Support Trust member Rachel Cvitanovich says.
“And it’s good to have something positive happening among everything else people are dealing with at the moment.”
The levy took effect in September and by March $43.5 million was collected by DairyNZ and paid to the Primary Industries Ministry to cover dairy’s share of the M bovis programme. The repayment plan is tracking well and in line with the work done to date.
DairyNZ is continuing to work on behalf of dairy farmers to ensure all programme spending provides value for money.
“There’s no question that M bovis has had a huge impact on our sector, particularly for some individuals and families,” DairyNZ chairman Jim van der Poel says.
“Latest data from the 10-year programme gives us confidence that we are making progress in our objective of eradicating the disease.
“DairyNZ managing the Biosecurity Response Levy ensures dairy farmers have a voice and DairyNZ sits on farmers’ behalf at the decision-making table for biosecurity responses.”
DairyNZ consulted farmers before the levy took effect. Farmers voted for their industry-good organisation to manage the levy on their behalf, which gives them the assurance it will be spent on response activity and DairyNZ has a seat at the decision-making table. It will let farmers know each year what the levy will be in writing at least 30 days before the effective date.
The money can be spent only on response and recovery of an incursion. The sector is paying back the response costs and the levy will continue to drop with the response costs. The levy is in place permanently and the rate is set each year.
It is separate from the DairyNZ milksolids levy that DairyNZ invests on farmers’ behalf in research, development, advocacy and expertise. Farmers have just voted on the milksolids levy, which happens every six years by mandate from the Government.
The change in the biosecurity levy takes effect on June 1 and will show as Biosecurity Response Levy on a milk docket.
