Tuesday, 30 October 2018 08:55

Still deciding M. bovis levy split

Written by  Pam Tipa
How DairyNZ and BLNZ will split 32% (about $278m) of the M. bovis eradication programme is still being discussed. How DairyNZ and BLNZ will split 32% (about $278m) of the M. bovis eradication programme is still being discussed.

Beef + Lamb NZ and DairyNZ are working through the cost-sharing process for the industry share of eradicating Mycoplasma bovis, says BLNZ general manager policy and advocacy Dave Harrison.

“To come up with a fair approach we have been making use of an independent panel,” he told Dairy News in a joint statement from both industry-good bodies.

“We have had initial advice and are providing feedback. Once the process has finalised, a recommendation will go to our respective boards and be shared with farmers.

“Given this is a sensitive and important process, we can’t comment on the specifics until it has been agreed and approved by our respective boards.”

The cost of the eradication programme is reckoned at $886 million over 10 years. MPI says $16m of that is loss of production and will be borne by farmers, while $870m is the cost of the response, including compensation. 

The Government will pay 68% of that and the two levying bodies, DairyNZ and BLNZ, will pay 32% (about $278m).

But exactly how it will be split between them remains under discussion. Earlier this year dairy industry sources said an 80/20 split between dairy farmers and beef farmers would be fair. However, beef farmers were pushing for a 90/10 split, pointing out that dairy farms are at the centre of the outbreak.

 

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