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.

More like this

Owl Farm marks 10 years as NZ’s first demonstration dairy farm

In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.

Featured

Farewell Jim

In a few hundred words it's impossible to adequately describe the outstanding contribution that James Brendan Bolger made to New Zealand since he first entered politics in 1972.

Nichol is new PGW chair

A day after the ouster of PGG Wrightson’s chair and his deputy, the listed rural trader’s board has appointed John Nichol as the new independent chair.

Fieldays to rebuild Mystery Creek services building

The iconic services building at National Fieldays' Mystery Creek site will be demolished to make way for a "contemporary replacement that better serves the needs of both the community and event organisers," says board chair Jenni Vernon.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter