Mushroom growers vote to keep controversial levy

Australia’s mushroom growers have voted on whether to keep or abolish the industry’s controversial levy. See what the outcome was.

The mushroom industry’s controversial levy is here to stay. PICTURE: ZOE PHILLIPS

MOST of Australia’s mushroom growers want the industry’s compulsory levy to stay, despite a campaign from the nation’s biggest grower to abolish it.

Last month horticultural powerhouse Costa Group conducted an industry-wide postal ballot to gauge support for the mushroom industry’s research and development and marketing and promotions levies it said had wasted millions of growers’ money. The combined levies are set at $4/kg of mushroom spawn.

The results, however, showed most growers support retaining the levies, with more than 80 per cent voting in their favour. About 72 per cent of the mushroom industry’s 46 levy payers cast a vote.

Australian Mushroom Growers’ Association chair Geoff Martin said while most growers wanted the levy to stay, the industry body acknowledged there were some “imperfections” with its management and had commissioned a business case to present to Hort Innovation – the body appointed to administer all horticultural levies – early next year.

In 2018-19, grower levies tallied $4.8 million, with more than $850,000 spent on “service delivery”.

“This vote allowed all levy payer voices to be heard,” Dr Martin said. “Our statutory levy is the envy of many mushroom associations around the world, particularly our R&D levy, which is extremely important to our industry as it is to any other. The R&D levy is matched by dollar-for-dollar with Australian Government funding.”

The AMGA favoured keeping the levies, fearing their removal would see a decline in mushroom consumption and a loss of significant projects.

Costa is by far the industry’s biggest producer, and therefore its biggest contributor to the levy coffers.

Costa spokesman Michael Toby said the levy saw growers spend far more than other levy-paying categories but received the least return on their investment, and that too much money was wasted on administration.

“This doesn’t alter the fact that it’s an ineffectual levy and a waste of money. As far as Costa is concerned, the AMGA owns the levy and they need to take responsibility for it and be held accountable for its performance,” Mr Toby said.

He said Costa would be writing to Agriculture Minister David Littleproud impressing upon him the need for key metrics to be attached to the levy, such as a rise in household consumption.

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