Dairy farmers benefit from separate meat levy

Media Release        

30 July 2009

Dairy farmers benefit from separate meat levy

Meat & Wool New Zealand says dairy farmers’ investment via the beef levy is buying them a range of outcomes in research and development, trade access and market development.

Chief Executive Dr Scott Champion says Meat & Wool New Zealand’s recently released Levy Proposal for 2010-2015 signals a continuation of work in these areas which is positive for dairy farmers.

He says a beef levy is collected at slaughter on all cull cows and an average dairy farmer currently pays $220 a year in beef levies to Meat & Wool New Zealand.

“Meat & Wool New Zealand is working for dairy farmers in trade policy activities to protect and improve New Zealand’s access for beef to the US, Canada, the EU and the increasingly important North Asian markets of Japan, Korea, Taiwan and China.”

“The US still takes over 50 per cent of New Zealand’s beef exports however, and much of this is manufacturing beef, including a significant supply of beef from the dairy sector. America hasn’t lost its love of the hamburger and the fast food sector has been particularly strong, as people look for cheaper eating out options in the tough economic environment in the US. It’s important for us to protect this market,” says Dr Champion.

“The dairy sector’s investment via the beef levy also provides dairy farmers with research and tools for improving both dairy farming and the beef production from their dairy farm. An example of this is our work on improving forage production through the use of the ForageMaster tool. ForageMaster helps dairy farmers answer the key question: “Does my current forage supply allow me to achieve my animal production targets?” Modifying this tool from an earlier version was completed in 2008 with assistance from DairyNZ. 

DairyNZ Chief Executive Dr Tim Mackle says DairyNZ and Meat & Wool New Zealand are investing together in three collaborative research projects: Pastoral Genomics, Johne’s Disease Research and Pastoral Greenhouse Gas Research.

“This collective investment allows our two organisations to further leverage farmer investment across the pastoral sector and to generate greater focus,” he says.

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