CATTLE producers strongly support plans to introduce a $1.50 a head transaction levy to fund the rapidly depleting Cattle Industry Fund which contributes to the National Livestock Identification System, animal health and biosecurity programs.
But the Australian Livestock & Property Agents Association and a few independent agents are opposed to administering another levy, holding up the proposed regulation change.
The cattle industry fund receives cash through a $1.10 a tag levy paid by breeders but Livestock SA and the Cattle Advisory Group – who advise Agriculture Minister Leon Bignell on spending of the fund – are pushing to have it replaced with a more equitable transaction levy paid by breeders, backgrounders and feedlotters.
Modelling has shown about 520,000 transactions occur each year in SA, similar to the number of tags being sold. This takes into consideration that 10-12 per cent of tags must be replaced through non-retention, and some SA-born animals are sold interstate to feedlots or slaughter.
Cattle advisory group chairperson Andy Withers said that in the past three years, the group had held numerous meetings across the state and gained the unanimous support of beef and dairyfarmers for the levy.
In April, Mr Bignell indicated his approval for the rise and sent letters to all agents but has recently received a number of letters of opposition.
Mr Withers said the cattle industry fund was being depleted to critically low levels and there was "no option" but to increase the levy.
"If we don't get it through soon we will have to go to $1.70 or even $1.90 to $2. If we don't do something until 2018 we will be in debt to the government for $320,000," he said.
The funding shortfall has been exacerbated by the decrease in SA's cattle herd in the past five years.
"We have had drought in the north and drought in the south – the South East has had three very dry years and many people have gone out of cattle into sheep and cropping," Mr Withers said.
He is annoyed by the anti-levy campaign run by a few independent agents.
"It is producer money. The agents are quite happy to collect a similar levy in Vic as state stamp duty. The only reason they are opposing it here is they know Qld wants a levy and they have something like 230 or 240 independent agents all wanting to scuffle the levy and ALPA is backing them," Mr Withers said.
He was pleased some agents understood what it took to have a program to export animals and move stock between states.
"Without an animal health certificate (issued by PIRSA) they can't send sheep to WA, cattle to WA, cattle to the NT or put sheep or cattle on a boat," Mr Withers said.
"There are some things government will fund but others industry must fund."
