Biosecurity levy hike a 'nasty shock' for sheep industry

Details are still unclear about how the government will implement the levy increase, announced in Labor's recent budget.

It comes as producers, processors and other industry stakeholders are already anticipating heightened biosecurity costs as the industry makes the transition to eID tags by January 1, 2025.

Wool Producers Australia CEO Jo Hall said while they were aware that biosecurity would be a key focus in the budget, the levy increase had come as "a nasty shock".

"We are very disappointed to hear that announcement," she said.

"Whilst we don't know what that mechanism looks like yet and we understand that the government will talk to industry about that, we firmly believe that as producers we already pay significant amounts of money, both through levies and through our own businesses looking after biosecurity.

"We seem to disproportionately be paying for biosecurity when we're not one of the biggest risk creators."

Ms Hall said Wool Producers Australia understood the predicted cost for the rollout of eID tags for sheep and goats was about $800 million.

"So far we have a commitment of about $20.1 million from the federal government... we don't think that is a fair and equitable cost split," she said.

"We also acknowledge that state governments have a role to play here but it doesn't look like biosecurity is a shared responsibility at the moment, given that producers seem to be footing the bill for the vast majority.

"This is in the midst of severely falling prices for sheep, we're hearing Southern NSW at Deniliquin, $20 a head... you put a $2 tag in an animal of that value and it's not looking viable at the moment."

Ms Hall said primary producers were already investing heavily in biosecurity and they were concerned that an additional producer levy was even being suggested.

"The value of agriculture this year is $81 billion, that's not just farmers that are benefiting from that, that is the national economy... there has to be recognition for that and we're just not seeing that," she said.

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Sheep Producers Australia CEO Bonnie Skinner said they would welcome further discussion with he Department of Agriculture, Fisheries and Forestry regarding the sustainable funding model for the national biosecurity system.

"Resilient biosecurity systems help protect producers and the broader industry from the impacts of diseases and invasive species that may affect animal health and productivity, markets and the quality and integrity of our products," she said.

"Industry is a beneficiary but also a significant investor into the biosecurity system, making substantial financial and operational contributions to industry service providers, RDCs and CRCs as well as through fees and charges and in-kind contributions such as the ongoing on-farm biosecurity activities that provide benefit to the broader community.

"Increased levies should be a point of ongoing engagement and discussion with industry and government, with additional cost-recovery programs directed more appropriately at risk creators."