Posted on June 01, 2017

ALEC moves to collect compulsory levy on dairy cow exports


Australian livestock exporters currently pay statutory export charges on exported beef cattle, sheep and goats. In 2006, livestock exporters also chose to initiate a voluntary charge on exported dairy cattle, introduced to enable funding for sector specific RD&E and marketing. However, due to the nature of the voluntary arrangement, the export charge is significantly under-collected and is not sufficient to meet the RD&E and marketing needs of the dairy cattle export sector. 

In recognising the importance of a reliable income stream for collective investment, and in acknowledging the restrictions and challenges of the current voluntary arrangement, our members unanimously requested that ALEC undertake to implement a statutory export charge for dairy cattle as a matter of priority. As such, ALEC has developed a proposal for instituting a statutory Dairy Cattle Export Charge and has commenced the process for its implementation. 

The proposed statutory Dairy Cattle Export Charge will be payable by exporters of dairy cattle at the point of export, at a rate of $6 per head. The statutory charge will be collected by LiveCorp and invested into sector specific RD&E and marketing activities, with a focus on;  

  • Improving animal health and welfare outcomes throughout the supply chain;
  • Improving supply chain efficiency and regulatory performance;
  • Enhancing market access conditions – for existing and new markets;
  • Enhancing communication - providing information and services on program progress and issues to industry and government; and
  • Improving corporate operations - governance, planning, evaluation and review to ensure efficient and effective investment. 

While the Dairy Cattle Export Charge will be imposed on Australian Government licensed livestock exporters, ALEC has identified that your organisation and membership may have an interest in this proposal. Where opportunities exist, the industry, through ALEC and LiveCorp, will be seeking to coordinate program activities maintained under the proposed export charge with industry stakeholders, in order to maximise cross sectorial efficiencies. As such, I have attached for your information and reference, a briefing document, detailing the rate, collection and use of the proposed Dairy Cattle Export Charge, as well as the process for its development and implementation.

In accordance with the Australian Government’s Levy Principles and Guidelines, ALEC has now commenced a three month stakeholder consultation period on the proposed statutory Dairy Cattle Export Charge. During this time, stakeholders have an opportunity to consider and comment on the proposal before Australian Government Licensed Exporters vote on its implementation. 

ALEC believes that the implementation of a statutory Dairy Cattle Export Charge reflects both a positive and necessary step forward for the dairy cattle export sector as well as Australia’s livestock export industry more broadly. Please note that the stakeholder consultation period will end on 1 September 2017 and that further information about the proposed export charge and consultation process can be found online at; http://auslivestockexport.com/

SADA seeks your feedback and suggestions regarding this move.  

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