From October 1, the TB differential slaughter levy (DSL) for dairy cattle has dropped by $1 to $9 per head. Beef animals are now levied at $5.50 reduced from $6.30.
The levy has been in place since August 2016. Ospri says the TB levy rate was amended as a result of the wider review, as part of an agreement between the livestock industries (beef, dairy and deer) and government.
The new TB levy rates take into account the different financial contributions to the TBfree programme intended to be made over the life of the plan by the dairy and beef industries.
It is managed by assigning the correct animal production type, dairy or beef, which determines what levy is charged at the time of slaughter.
When farmers are tagging and registering their animals, they select the correct production type for their livestock in the NAIT system.
When purchasing animals, farmers need to make sure animal production types are correct after the movement onto their property is confirmed. If an animal's production type is dairy when it is sent to slaughter, the farmer will be charged the dairy levy for that animal. If the production type of the animal is changed from dairy to beef - and staye on a beef farm for more than 62 days - the farmer will be charged the beef levy.
When buying animals on a regular basis, a livestock agent or information provider might help with updating the production types of animals. For untagged animals, meat processors use the primary farm level (NAIT number) production type to determine what levy rate should be charged.
Key Tips
- Keep your NAIT account up to date. This includes recording movements on and off your property and reviewing animal production type for any livestock being consigned to slaughter.
- If finishing dairy animals as beef, the production type must always be updated in the NAIT system 62 days before sending to slaughter; otherwise the animals will be charged the dairy levy.
- For untagged animals, the meat processors will use the primary farm level (NAIT number) production type for charging the TB slaughter levy.
- For unregistered animals, the meat processors will use the tag level production type for charging the TB slaughter levy.
