TB Slaughter Levy Changes Due To Market Conditions

An annual review of TB differential slaughter levy rates for beef and dairy cattle has delivered levy updates as part of this year’s TBfree programme.

The TB differential slaughter levy is collected to support funding of the TBfree programme on behalf of beef and dairy industries, and the funding shares may change annually based on shifts in the relative size and value of each industry.

OSPRI’s Disease Management GM Danny Templeman says each year the levy rates are reviewed under the TBfree Funders Agreement to ensure overall funding of the TBfree programme aligns with the agreed funding levels. Levies are adjusted to reflect the latest industry farm gate values and slaughter volumes for both dairy and beef stock.

"This year there is a need for a change in the levy rate for dairy stock, which is being driven by market conditions. The reason for the change in dairy cattle slaughter levies is the reduced slaughter volumes we’re seeing, combined with farm gate price increases for dairy this year."

From 1 October 2022 the new differential slaughter levy rates are:

o Dairy slaughter levy for dairy cattle changes from $9.00 per head to $10.50 per head

o Cattle slaughter levy for beef animals remains unchanged at $5.50 per head

o Live export levy remains unchanged at $11.50.

Adjustments to the differential slaughter levy are advised to DairyNZ and Beef + Lamb New Zealand, the industry levy bodies consulted as part of the TBfree Funders Agreement. Changes are made in line with the annual funding level specified.

Adjustments in differential levy rates do not provide an overall increase in the annual funding of the TBfree programme - but do ensure consistent funding to enable the programme to deliver.

Beef and dairy farmers should keep their NAIT accounts up-to-date and ensure that the correct animal type is recorded so they are paying the correct TB slaughter levy.

For more information please visit OSPRI’s website Differential Slaughter Levy (DSL)

© Scoop Media