Eruption over big mushroom spawn levy levy leap

VEGETABLE grower Costa’s fury at the doubling of its mushroom spawn levy has reignited debate on the system.

On the rise: Last week’s Federal Budget lifted the mushroom spawn levy.

VEGETABLE grower CostaÂ’s fury at the doubling of its mushroom spawn levy has reignited debate on the system.

Australia’s biggest mushroom grower will face a $1.6 million annual bill after last week’s Budget lifted its levy from $2.16 a kilogram of spawn to $4.32.

Costa chief operating officer George Haggar expressed disappointment at the increase, despite it being supported by most growers and rubberstamped by Agriculture Minister Barnaby Joyce.

Some Coalition backbenchers are said to be “furious” that it came despite a report recommending “serious reform” of how horticulture levies are collected and spent.

Costa’s decision to close farms in Tasmania and NSW last week — although not directly linked to the levy increase — also has some regional MPs on edge.

A Senate inquiry is in progress into grass-fed beef levies and it is believed some MPs want further, wide ranging reform, while others dismissed Costa’s “bleating” and believed the levy system was fair.

The Mushroom Growers Association favoured a levy rise aimed at increasing consumption through marketing and research and development.

Costa said it was “only one vote” but its annual bill would be “more than one third of the total levy”.

Costa rivals, including White Prince, argued for an increase in the levy and that all grower received R&D and marketing benefits from the system.

Victorian Labor MP Rob Mitchell, whose semi-regional seat of McEwen takes in Costa’s Mernda mushroom farm, said the levy doubling was a “sneaky, underhand move” that risked jobs in his electorate.

Agriculture Minister Barnaby Joyce said the levy increase was supported by industry and the majority of individual growers.

“If a dominant player in the mushroom industry wants to change the vote weighting I would encourage them to talk with the industry to achieve that outcome.