It proposes farmers pay up to 3.9 cents per kilogram of milksolids over the next two seasons, with the levy then being reviewed annually.
That's on top of the 3.6c/kg MS farmers pay in DairyNZ levies now.
That didn’t go down well with many of the 50 farmers at the Darfield meeting on Wednesday. They suggested it is a Ministry for Primary Industries responsibility.
“MPI let this come into the country and now we are being asked to clean up the mess,” one farmer said.
“MPI has not done its job, treated farmers poorly and now we are here being asked to pay for it – where is the accountability on MPI,” another asked.
Last May the sector agreed, in partnership with the Government, it will try to eradicate the disease.
DairyNZ farmer director Colin Glass said going into partnership with the Government and the beef sector significantly reduces the $870 million cost.
The Government supports the phased eradication programme with $591m and the beef sector with $17m, leaving the dairy sector to fund $262m over 10 years.
Accountability was top of the issues raised by farmers who pulled no punches.
“We want accountability. Is the budget right, what guarantee is there they (MPI) won’t come back and ask for more money,” farmers asked.
“Let’s not underestimate our industry has a real crisis in confidence, let’s not under estimate that impact,” farmers said.
“Farm profitability is being challenged like never before. We are absolutely wired to DairyNZ to provide us the tools to take charge of our own businesses.
“The axe is raised – you, the DairyNZ board need to stand up and deliver,” North Canterbury farmer Shaun Lissington said.
For that very reason Glass said it’s important farmers understand why DairyNZ has signed the Government Industry Agreement (GIA) and now, as part of that, is proposing the levy on behalf of farmers.
“We know there is risk but we can’t sit back and do nothing.
“There’s no guarantee but if we see the writing on the wall for a trigger point, if we are at the table, we can have input,” Glass said.
“It’s not about winners and losers amongst ourselves. The issue is we have a cost to share and how we do that as an industry is the issue.”
DairyNZ chief executive Tim Mackle said while it’s a lot of money it’s a lot less than the sector would have had to bear if a different choice had been made.
“But we need farmer support to set the levy.
“If this gets voted down MPI made it clear they will recover the money.
“Yes, it could be more or less but MPI have told us the alternative is they will recover the cost under the Biosecurity Act, rather than GIA, and the levy amount and payback period would be solely at MPI’s discretion.
All farmers producing bovine milksolids will pay the levy.
Beef + Lamb NZ has yet to consult farmers but is likely to use a kill levy.
All dairy farmers will be exempt from the beef fee but in questioning the validity of that, farmers were told precise processes were yet to be worked through.
Glass stressed to farmers the heart of the issue is about how they want to be represented.
“DairyNZ is not happy with the 3.9% but it is part of GIA and we need to work through it if you want DairyNZ to help – that’s what you are voting on.”
Mackle said the meetings attracted good attendances and robust discussion was expected.
“It’s been good to see so many farmers attending the meetings and we’ve appreciated the questions and feedback.
“Farmers are really drilling into the detail, which is healthy. There’s a lot of money involved and the eradication programme is important.”
Feedback papers and an information pack were sent to all farmers on February 1 with the consultation process and voting closing on February 28.
DairyNZ will confirm the result with MPI and notify farmers on March 29. The levy could be operating by June 1.
MORE:
Go to: dairynz.co.nz/GIA, email info@dairynz.co.nz or call 0800 4 324 7969
