THE dairy industry is considering a proposal that could save up to $750,000 every five years.
Consultation will begin shortly to discuss whether a mandatory poll to determine the dairy levy should be scrapped.
A review committee has recommended the poll should only be held when it is determined a change was needed, instead of automatically.
The levy, collected by the government on behalf of the industry, funds Dairy Australia and, in turn, contributes towards DairySA.
SA Dairy Association president and Mount Compass dairyfarmer David Basham sat on the committee that reviewed the need for a mandatory poll.
The panel considered Dairy Australia research on levy payers after the 2012 poll, feedback from industry groups, public submissions and conversations with dairyfarmers Australia-wide.
Mr Basham said many levy payers objected to the cost of a poll.
"The written submissions were varied and there were a lot of views about what should happen," he said.
"The consistent thing was people didn't like seeing waste in consultation for a no-change vote."
While almost all agricultural industries have a levy in place, dairy and wool are the only ones with a mandatory poll.
The dairy industry required a vote every five years on whether it would like to see a change or not.
The levy is worked out as a small per cent per kilogram of protein in milk.
The cost to hold the poll every five years is estimated at $750,000.
"That could be used for the dairy industry to benefit more directly," Mr Basham said.
The review committee put forward several recommendations to Dairy Australia, which were accepted by the board. The main point was that if there was no need for a change, there was no need to hold a poll.
Under the proposal, a levy poll committee would meet every five years, with representatives from Australian Dairy Farmers and Dairy Australia, to assess if there was any need for change.
Mr Basham said this committee would also consult with representatives across state borders and dairy business sizes.
If the committee decides there is no need for a change, there will be no poll held, however any proposed changes will require a vote.
"If there is going to be a change it will be put to farmers," Mr Basham said.
He said the proposal would still have a system in place for those in the industry to have a say, if they disagreed with the committee's findings of no change.
Dairyfarmers can initiate a poll by getting 15pc of levy voters to sign a petition, where the matter can be brought to a Dairy Australia general meeting, and voted on.
Australian Dairy Farmers president Noel Campbell said the national group supported removal of the mandatory poll.
"This proposal is not about removing scrutiny," he said. "This is about a direct saving of at least $750,000 that can instead go directly to industry benefit.
"That's why ADF supports it and why we believe dairy levy payers should also support it."
Elizabeth Anderson
Stock Journal's magazine editor.
Stock Journal's magazine editor.
