Dairy farmers will vote on lifting their levies to Dairy Australia (DA) as processors await the completion of a due diligence project before committing to contributing. Processor representative body Australian Dairy Products Federation (ADPF) said the due diligence project would establish the value of DA’s research and development to its members. Processors have never before paid the levy and according to ADPF the report has yet to be completed. Farmer organisations United Dairyfarmers of Victoria and eastAUSmilk are calling on processors to contribute and share in the cost of DA’s work as it delivers benefits to everyone in the supply chain.
Farmers currently pay 2.8683c/kg of butterfat and 6.9914c/kg protein to DA, totalling $32m per year. The Levy Poll Committee is giving farmers the option to vote for no change to the levy or an increase of 15% – 25% with the Dairy Levy Poll Advisory Committee recommending farmers vote for a 20% increase in their DA levies.