A recent push by Cattle Council of Australia (CCA) for extra funding, due to declining State Farm Organisation (SFO), membership has prompted this blog.

Since 1997 we have had the current Government monopoly in Meat and Livestock Australia (MLA) and CCA etc.

 Livestock producers have funded increased levies (what some refer to as compulsory unionism) , however their returns have remained almost stagnant since the 1980's.

The trickle down effect to producers, when meat prices increase are reaped by those in the supply chain above the producer.

As a result livestock producers are rightly concerned that a grab for some of the money by Cattle Council  is an expectation that we should be forced to help them now that times are tougher, and farmers have lost the confidence of SFO's and CCA in looking after their "interests"

The problem for most livestock producers is they no longer see SFO/CCA as supporting them. Some SFO's have been accused of getting into bed with government to the detriment of farmers e.g. agreeing the natural resource management legislation, accepting funds in relation to leasehold property etc. It would appear that SFO's will continue to decline because they aren't seen as farmer orientated.

The problem with CCA is that they are not a grass roots livestock producer organisation and get involved in meat marketing, trace back, NLIS etc and as a result many livestock breeders are not interested in financially "propping them up"

This results from what CCA are seen to be actually involved in, and where all the costs associated with their activities end up, that is back on the livestock breedere.g.NLIS, LPA and increased transaction levies.

Comments by Cattle Council members indicate that they are confused about whom they represent and what they should be doing, examples from the dialogue on farmonline blogs include:-

a) " I would suggest that stakeholders would include the State Farming Organisations who have funded been the "owners" of CCA since its inception."

NB Not Livestock breeders, CCA's starting fund and reserve are from historical cattle levies.

b) " who then goes into bat for the Australian industry when there is an Ecoli outbreak in Nth America, when steel shot appears in beef products in Asia, when Russians want to renegotiate the price of beef?"

Logically cattle means living beast, but they see their role as looking after what are really meat processing  problems. Where was CCA when the indonesian market was closed by our Governemnt? ( I know the answer )

What is also unusual in CCA discussion paper is the following statement:"

"It is important to provide an “opt out” option as producers must not be forced to pay for national representation (compulsory unionism). Producers must also take on the responsibility of actually joining the national representative organisation as a ‘member’ before they can vote or stand for direct election."

Two points come to mind:-

1) MLA transaction levies etc in effect is already compulsory unionism, but worse because levy payers have to register to vote.

2) Producers must join the proposed organisation even though the current system cannot recognise who paid levies, and how much they paid. That means the system is still open to the current rorts where individuals/companies just claim their right whether it is correct or a blatant lie.

Logically livestock breeders would voluntarily join an organisation that was seen to support their interests. The decline of SFO's is just the chickens coming home to roost.

My questions to you are:-1) Do livestock producers want a representative organisation that is not a government department and represents their interests instead of the current system where transaction levy benefits flow to processors and supermarkets, instead of livestock producers whom paid the levy in the first place?

                                     2) Is the current structure a dinosaur needing drastic evolution?

                                      3) Who actually represents the livestock breeder now?

THE ACT-

PRIMARY INDUSTRIES (EXCISE) LEVIES ACT 1999 - SCHEDULE 3

Cattle transactions

   

   

1   Definitions

                   In this Schedule:

"bobby calf" means a bovine animal (other than a buffalo or a head of lot-fed cattle):

                     (a)  which has been slaughtered and the dressed weight of whose carcase did not or does not exceed 40 kg; or

                     (b)  which has not been slaughtered but which, at the time of the leviable transaction or other dealing, had or has a liveweight that did not or does not exceed 80 kg; or

                     (c)  which has not been slaughtered or had its liveweight determined at the time of the leviable transaction or other dealing but which, in the opinion of the intermediary, would, if slaughtered at that time, have constituted or constitute a carcase whose dressed weight would not have exceeded or would not exceed 40 kg.

"cattle" means bovine animals other than buffalo.

"dairy cattle" means cattle that are, or, unless exported from Australia, would be likely to be, held on licensed dairy premises for a purpose related to commercial milk production, including, but without limiting the generality of the above, bulls, calves and replacement heifers.

"industry marketing body" has the same meaning as in Part 3 of the Australian Meat and Live-stock Industry Act 1997 .

"industry research body" has the same meaning as in Part 3 of the Australian Meat and Live-stock Industry Act 1997 .

"leviable bobby calf" means a bobby calf to which subclause 6(4) does not apply.

"licensed dairy farmer" means the person having day to day control of licensed dairy premises.

"licensed dairy premises" means premises that, under a law of the State or Territory in which the premises are situated, are authorised for use as a dairy farm.

"lot-fed cattle" means cattle that are, or are likely to be, used in the production of grain-fed beef.

2   Intermediary

                   A reference in this Schedule to the intermediary is a reference to the person required, under the Primary Industries Levies and Charges Collection Act 1991 , to pay to the Commonwealth, on behalf of the producer, an amount equal to the amount of levy imposed by this Schedule.

3   Determining the weight of a carcase

                   For the purposes of this Schedule, in determining the weight of a carcase immediately after it has been dressed, no adjustment of that weight is to be made on account of shrinkage.

4   Related companies

                   For the purposes of this Schedule, the question whether companies were or are related to each other is to be determined in the same manner as the question whether 2 corporations are related to each other is determined under the Corporations Act 2001 .

5   Imposition of levy

             (1)  Levy is imposed on:

                     (a)  each transaction entered into after the commencement of this Schedule by which the ownership of cattle is transferred from one person to another; or

                     (b)  the delivery, after the commencement of this Schedule, of cattle to a processor otherwise than because of a sale to the processor; or

                     (c)  the slaughter by a processor, after the commencement of this Schedule, of cattle purchased by the processor and held for a period of more than 60 days after the day of the purchase and before the day of the slaughter; or

                     (d)  the slaughter by a processor, after the commencement of this Schedule, of cattle in respect of which levy imposed by this Schedule would not be payable under paragraph (a), (b) or (c).

             (2)  Levy is not imposed by this Schedule:

                     (a)  on the sale of dairy cattle for dairying purposes; or

                     (b)  on the sale of cattle at auction to the vendor; or

                     (c)  on the sale or delivery of cattle between related companies, unless the company buying or taking delivery was or is a processor; or

                     (d)  on the delivery of cattle to a processor for slaughter on behalf of the person delivering the cattle if:

                              (i)  the delivery occurs within 14 days after the cattle were or are acquired by that person; and

                             (ii)  the cattle are afterwards slaughtered; and

                            (iii)  the person continues to own the cattle immediately after their hot carcase weight, within the meaning of Schedule 1, is determined or is taken, for the purposes of that Schedule, to have been determined, as the case requires; or

                     (e)  on the sale or delivery of cattle to a processor, if the cattle are not, at the time of the sale or delivery, fit for human consumption, under any applicable law of the Commonwealth or of a State or Territory; or

                      (f)  in circumstances where the ownership of the cattle changed or changes:

                              (i)  as a result of a sale or transfer ordered by a court in proceedings under the Family Law Act 1975 ; or

                             (ii)  by devolution on the death of the owner of the cattle; or

                            (iii)  on the happening of events referred to in subsection 70-100(1) of the Income Tax Assessment Act 1997 ; or

                     (g)  on a leviable bobby calf on which levy imposed by this Schedule, or by the repealed Cattle Transactions Levy Act 1997 , has already been paid; or

                     (h)  in such other circumstances (if any) as are prescribed.

             (3)  For the purposes of paragraph (2)(a), dairy cattle are taken to be sold for dairying purposes if:

                     (a)  both the vendor and the purchaser are licensed dairy farmers; or

                     (b)  either the vendor or the purchaser is a licensed dairy farmer and the cattle are being acquired for inclusion in, or eventual inclusion in, a herd of dairy cattle.

             (4)  If cattle are delivered to a processor, otherwise than because of a sale to the processor, for fattening or agistment for a period before slaughter by the processor, the cattle:

                     (a)  are taken not to have been delivered to the processor for the purposes of paragraph (1)(b) unless they are slaughtered at the end of that period; and

                     (b)  if they are slaughtered at the end of that period, are taken to have been delivered to the processor immediately before their slaughter.

6   Rate of levy

             (1)  The rate of levy imposed by this Schedule on each head of cattle (other than a head of lot-fed cattle or a leviable bobby calf) is the sum of the following amounts:

                     (a)  $2.16 or, if another amount (not exceeding $6.50) is prescribed by the regulations, the other amount;

                     (b)  72 cents or, if another amount (not exceeding $2.00) is prescribed by the regulations, the other amount;

                     (c)  17 cents or, if another amount (not exceeding $4.00) is prescribed by the regulations, the other amount;

                     (d)  13 cents or, if another amount (not exceeding 50 cents) is prescribed by the regulations, the other amount.

Note 1:       Paragraph (a) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry marketing body.

Note 2:       Paragraph (b) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry research body.

Note 3:       Paragraph (c) identifies amounts that, under the National Cattle Disease Eradication Account Act 1991 , are destined for the National Cattle Disease Eradication Account.

Note 4:       Paragraph (d) identifies amounts that, under Australian Animal Health Council (Live-stock Industries) Funding Ac... , are destined for the Australian Animal Health Council.

             (2)  The rate of levy imposed by this Schedule on each head of cattle that is a leviable bobby calf is the sum of the following amounts:

                     (a)  48 cents or, if another amount (not exceeding $1.90) is prescribed by the regulations, the other amount;

                     (b)  16 cents or, if another amount (not exceeding 40 cents) is prescribed by the regulations, the other amount;

                     (c)  the prescribed amount (not exceeding 20 cents), if any;

                     (d)  the prescribed amount (not exceeding 50 cents), if any.

Note 1:       Paragraph (a) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry marketing body.

Note 2:       Paragraph (b) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry research body.

Note 3:       Paragraph (c) identifies amounts that, under the National Cattle Disease Eradication Account Act 1991 , are destined for the National Cattle Disease Eradication Account.

Note 4:       Paragraph (d) identifies amounts that, under the Australian Animal Health Council (Live-stock Industries) Funding Ac... , are destined for the Australian Animal Health Council.

             (3)  The rate of levy imposed by this Schedule on each head of lot-fed cattle is the sum of the following amounts:

                     (a)  $2.16 or, if another amount (not exceeding $6.50) is prescribed by the regulations, the other amount;

                     (b)  72 cents or, if another amount (not exceeding $2.00) is prescribed by the regulations, the other amount;

                     (c)  17 cents or, if another amount (not exceeding $4.00) is prescribed by the regulations, the other amount;

                     (d)  13 cents or, if another amount (not exceeding 50 cents) is prescribed by the regulations, the other amount.

Note 1:       Paragraph (a) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry marketing body.

Note 2:       Paragraph (b) identifies amounts that, under the Australian Meat and Live-stock Industry Act 1997 , are destined for the industry research body.

Note 3:       Paragraph (c) identifies amounts that, under the National Cattle Disease Eradication Account Act 1991 , are destined for the National Cattle Disease Eradication Account.

Note 4:       Paragraph (d) identifies amounts that, under the Australian Animal Health Council (Live-stock Industries) Funding Ac... , are destined for the Australian Animal Health Council.

             (4)  For the purposes of subclause (1), a cow with a calf at foot are together taken to constitute a single head of cattle.

7   Who pays the levy

             (1)  Levy imposed by this Schedule on a transaction by paragraph 5(1)(a) of this Schedule is payable by the person who owned the cattle immediately before the transaction was entered into.

             (2)  Levy imposed by this Schedule on a delivery of cattle by paragraph 5(1)(b) of this Schedule is payable by the person who owned the cattle immediately before the delivery.

             (3)  Levy imposed by this Schedule on the slaughter of cattle by paragraph 5(1)(c) or 5(1)(d) of this Schedule is payable by the person who owned the cattle at the time of the slaughter.

8   Regulations

             (1)  The Minister may, by notice in the Gazette, declare a body to be the body whose recommendations about the amount to be prescribed for the purposes of paragraph 6(1)(a), 6(1)(b), 6(1)(d), 6(2)(a), 6(2)(b), 6(2)(d), 6(3)(a), 6(3)(b) or 6(3)(d) of this Schedule are to be taken into consideration under subclause (2).

             (2)  If a declaration is in force under subclause (1), then, before the Governor-General makes regulations for the purposes of the paragraph to which the declaration relates, the Minister must take into consideration any relevant recommendation made to the Minister by the body specified in the declaration in relation to that paragraph.

9   Transitional--regulations

             (1)  This clause applies to regulations if:

                     (a)  the regulations were made for the purposes of a particular provision of the Cattle Transactions Levy Act 1997 ; and

                     (b)  the regulations were in force immediately before the commencement of this clause.

             (2)  The regulations have effect, after the commencement of this clause, as if they had been made for the purposes of the corresponding provision of this Schedule.

10   Transitional--declarations

             (1)  This clause applies to a declaration if:

                     (a)  the declaration was made for the purposes of a particular provision of the Cattle Transactions Levy Act 1997 ; and

                     (b)  the declaration was in force immediately before the commencement of this clause.

             (2)  The declaration has effect, after the commencement of this clause, as if it had been made for the purposes of the corresponding provision of this Schedule