NAIT Reconsiders Operational Strategy To Accommodate Smaller Rise In Levies

The National Animal Identification and Tracing scheme, NAIT Limited, ran a public consultation with levy payers and collection agents between 21 January and 25 February 2022. A proposal was put forward to increase the tag levy from $0.90 to $1.35 and the slaughter levy from $0.50 to $1.77, to enable NAIT Limited to deliver a traceability system that is easy to use, fit for purpose, and that will perform in the event of a disease outbreak. The proposal included an increase in Crown and Deer industry funding.

A total of 147 submissions were received from individual farmers/farming operations, primary sector groups, shareholders, funders, OSPRI committees and collection agents. Submissions ranged in sentiment towards the proposal, were complex in nature, and required extensive analysis and discussions to make decisions on the outcome. For this reason, the Board of NAIT Limited decided, in March, to defer any decision on NAIT Levies to allow for a comprehensive review of feedback.

On 19 May 2022 the Board of NAIT Limited decided to revise their proposed operational strategy under a reduced funding package with an emphasis on delivering the core capabilities of a fit-for-purpose traceability system that performs in the event of a disease outbreak. The revised strategy will focus on delivering the core capabilities in the immediate term, with a staged approach to delivery of additional services that NAIT Limited believe will be important to optimise the animal traceability system in New Zealand. Under this reduced funding package, NAIT Limited has adjusted the proposed levies, whilst maintaining the 35/65% Crown/Industry Split.

Effective 1 July 2022, the tag levy will increase from $0.90 to $0.97 (consultation proposal: $1.35) and the slaughter levy from $0.50 to $1.49 (consultation proposal $1.77). These new cattle levy rates align with the agreed dairy/beef industry split. The Crown will increase their contribution to $4.34m pa (from $2.14m pa), while the deer Industry will increase its contribution to $249k pa (from $120k pa).

Kevin Forward, Head of Traceability, says of the decision to reduce the total funding package for NAIT:

‘It was clear from the feedback we received that it is a difficult time for farmers. We also have an obligation to ensure our traceability system meets the requirements in the NAIT Act and the expectations of those that supported the proposal. We had to take this all into account when presenting our recommendations to the Board. I believe we have reached a satisfactory compromise that reflects our core principle of true and meaningful engagement.’

‘We would like to thank every single person or group that made submissions and participated in the discussions that have led us to this decision. I am proud to represent a sector that can navigate these resolutions in the true spirit of collaboration.’

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