NAIT levies consultation outcome follows careful consideration

After careful consideration of submissions, the Board of NAIT Limited has approved an increase in NAIT levies below what was proposed in the NAIT levies consultation.

NAIT levies consultation background

We ran a public consultation with NAIT levy payers and collection agents between 21 January and 25 February 2022. We proposed to increase the:

  • tag levy from $0.90 to $1.35
  • slaughter levy from $0.50 to $1.77.

This was to allow us to deliver a traceability system that is easy to use, fit for purpose, and able to perform in the event of a disease outbreak.

The proposal included an increase in Crown and deer industry funding.

We received a total of 147 submissions from:

  • individual farmers/farming operations
  • primary sector groups
  • shareholders
  • funders
  • collection agents
  • OSPRI committees.

These submissions ranged in opinion, were complex, and required extensive analysis and discussion. For this reason, in March 2022, the Board of NAIT Limited decided to defer any decision on NAIT Levies to allow for comprehensive review of feedback.

NAIT Limited revises Operational Strategy following consultation feedback

On 19 May 2022, the Board of NAIT decided to revise the proposed Operational Strategy, based on a lower funding option.

The revised strategy focuses on:

  • delivering the core functions of a fit-for-purpose NAIT information system that works in a disease outbreak
  • using a staged approach to deliver additional services that we believe will optimise the animal traceability system.

Under this lower funding option, we have adjusted the proposed levies, while maintaining the 35%/65% Crown/industry split.

From 1 July 2022 the:

  • tag levy will increase from $0.90 to $0.97 (consultation proposal was $1.35)
  • slaughter levy will increase from $0.50 to $1.49 (consultation proposal was $1.77). 

These new cattle levy rates align with the agreed dairy/beef industry split.

Yearly contributions from the:

  • Crown will increase from $2.14m to $4.34m
  • deer industry will increase from $120,000 to $249,000. 

Head of Traceability thanks everyone who made a submission

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 obligations of 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.’