Have your say on proposed NAIT levy changes

We are consulting on proposed increases to NAIT cattle tags levies and slaughter levies that help fund New Zealand’s national animal identification and tracing scheme. 

We want to hear from farmers, processors, tag manufacturers and others across the sector about the proposed levy increases and the future of the NAIT scheme.

Consultation is open for four weeks and will close on Thursday 23 July, 5pm. 

Overview

We are proposing to increase NAIT cattle tag and slaughter levies to:

  • Replace the current NAIT information system with a modern, user-friendly platform
  • Address a historic levy under-collection of around $1.2 million
  • Maintain effective biosecurity and traceability across New Zealand

These changes aim to ensure the scheme continues to work well for farmers and supports New Zealand’s biosecurity and market access.

About the NAIT scheme 

The NAIT (National Animal Identification and Tracing) scheme tracks cattle and deer across their lifetime in New Zealand. It provides a reliable record of:

  • Where animals are
  • Where they have been
  • Who is responsible for them

This system plays a critical role in:

  • Animal health surveillance
  • Supporting biosecurity responses
  • Protecting food safety
  • Maintaining international market access

The NAIT scheme is funded jointly by farmers and the government, with the costs shared across the dairy and beef cattle and deer livestock industry. MPI contribute 35%, Deer Industry New Zealand 2%, and the remaining 63% is split between Dairy (54.59%), Beef (45.41%). This shared approach means the scheme is joint industry-government led. 

Dairy and Beef industry contributions are collected via farmer levies set under the National Animal Identification and Tracing (Levies) Regulations 2012 on:

  • the purchase of NAIT tags (tag levy),
  • animal slaughter (slaughter levy), and
  • animals that can’t be tagged (unsafe to tag levy)

What's being proposed

These changes would contribute to addressing an approximate projected funding shortfall of $1.5 million per year over the next three years. 

We considered a range of options, including continuing with the current system and replacing it without increasing levies. However, without a change to funding, the NAIT system would not have sufficient investment to maintain and improve its performance over time. This would increase risks to: 

  • system reliability
  • reduce New Zealand’s ability to respond quickly to significant livestock biosecurity threats
  • undermine confidence in our traceability system and market access. 

Over time, the cost of underinvestment is likely to be significantly greater than the proposed changes.

Levy type Current rate  Proposed rate Levy ceiling
Cattle tag levy $0.97 $1.35 $1.35
Slaughter levy $1.49 $1.91 $2.25

What this means for farmers

Actual costs will vary depending on herd size, tag use and slaughter numbers. Estimated impacts (based on average herd sizes):

Beef farms Dairy farm 
Average herd size 175 head 451 head
Current cost (per farm/year) $268 $354
Potential cost (per farm/year) $358 $466
Difference $90 $112

Have your say

You can make a submission by completing the online submission form.

If you have a question about the consultation process or the proposed changes, please contact consultation@OSPRI.co.nz

Next steps

After the consultation closes:

  1. All submissions will be reviewed and analysed
  2. We will prepare a recommendation for the OSPRI board
  3. The OSPRI Board will make a decision
  4. We will publish a report summarising feedback and outcomes

For more information on NAIT plans and funding: NAIT plans and funding