Beef transaction levy: Calls for first increase in 15 years

A former livestock industry leader is calling for the beef transaction levy to be doubled.

Lucinda Corrigan is calling for the beef transaction levy to be increased for the first time in 15 years.

The transaction levy on cattle sales should be doubled, according to a beef industry leader.

Lucinda Corrigan, a former Meat and Livestock Australia director and prominent NSW Angus stud breeder, said it was time to think about the first levy lift in 15 years.

“I think it is a great time to think about investing in productivity and improvements within our industry because the industry is awash with money,” Ms Corrigan told the Australian Global Food Forum last week.

“If it was me … we’d be doubling the levy and we would be increasing the public-private partnerships which could help us solve some of the big constraints we have.”

Lots has changed in the years since the last levy increase.

Ms Corrigan said issues such as the social license to farm and sustainability credentials were new to the scene since the last levy increase, but funding was static.

“These are my personal views but the transaction levy of $5 was set in 2006, and the value of cattle has probably tripled in that time, but the levy remains the same,” she said.

The Eastern Young Cattle Indicator averaged 342c/kg in 2006 when there was the last levy increase, while the average this year is 831c/kg.

Former Cattle Council of Australia president and Coleraine cattle producer John Wyld, who was on the committee that promoted the last transaction levy rise, said he was “very much in favour of levies” but any lift should be response to a good case for it.

“I think it is time we did discuss it because what we need to do now is different to 2006 when the last levy rise was made,” Mr Wyld said.

“It’s not a simple thing to just increase the levy – there has to be widespread industry consultation and it could take a couple of years.”

He said the success of a vote to increase levies would depend on convincing the middle ground – there would be those who would never support a rise and those who would always support it, but the vast majority could be won over if a good case was presented.

Holbrook Poll Hereford breeder and commercial trader Marc Greening said it was sensible to look at the transaction levy amount and a possible lift, but it was important to know what any extra funding would support.

“We would need a clear idea on what money would be spent on and KPIs (key performance indicators) on the extra spend funded from a levy increase,” he said.

Cattle Council of Australia chief executive Travis Tobin said the organisation’s role was “to facilitate the will of cattle producers”.

“Any change in the cattle transaction levy needs to have the support of a majority of cattle producers,” Mr Tobin said.

“Cattle Council would need to gauge producer support for an increase before any proposal could be substantially advanced.”

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