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Australian Pig Slaughter Levy Set to Rise

30 June 2014

AUSTRALIA - The second tranche increase to the Pig Slaughter Levy for Australian pork producers, collected by processors at the point of slaughter, is set to take effect on 1 July.

Australian Pork Limited (APL) Chief Executive Officer, Andrew Spencer said: “The history of the levy

increase goes back to the APL Annual General Meeting held in November 2011. This is when Australian
pig farmers endorsed a proposal to increase the marketing portion of the Pig Slaughter Levy by a total of 90 cents per slaughter pig.

“At the same time the decision was made that to alleviate the impact of a 90 cent rise in one go, the
increase would take place over three tranches. The first rise of $0.30 came into effect on 1 July 2012.

The second tranche of a further A$0.30 is set to take effect from 1 July 2014, with the third and
final tranche of A$0.30 to come into effect from 1 July 2016.”

Before 2012, the Pig Slaughter Levy was increased in 1994 mainly to cover APL’s Marketing, Research and Development (R&D) and Policy expenses.

When the announcement was made in November 2011, it had been nearly 18 years since an increase in the R&D or Marketing levy had occurred.

“Inflation has erased an enormous amount of its value over this time and APL’s productivity improvements were having difficulty to keep up,” Mr Spencer said.

With slaughter figures forecast to be around 4.8 million pigs for 2014/15, this latest increase will lift APL’s producer contribution to the budget from just around A$12.7 million to just over A$14 million.

 

TheMeatSite News Desk



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