Producer levies boost MLA's big year

05 Nov, 2014 01:00 AM
The biggest contributor to MLA's coffers was $61.2m from grassfed cattle levies

THE biggest cattle slaughter for 36 years boosted Meat and Livestock Australia's (MLA) income from producer transaction levies by 13 per cent in 2013-14 to $106 million.

A 19.1pc jump in government support to $46.7m and a 12.1pc lift in processor contributions to $10.8 million pushed MLA's total income to $188.5m, a 16.2pc increase compared with the previous year.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has estimated 9.6m cattle were slaughtered in 2013-14, the highest since 1978-79, as drought-hit farmers across eastern Australia were forced to offload stock.

MLA spent $181.1m in 2013-14, an increase of 9.2pc, including $85.2 million on marketing, a decrease of 1.2pc from the previous year, and $95.8m on research and development (R&D), an increase of 20.4pc. Corporate costs totalled $11.4m.

The biggest contributor to MLA's coffers was $61.2m from grassfed cattle levies, almost twice the $34.2m collected from lamb and mutton levies. Grainfed cattle levies generated $9.8m.

MLA's surplus for the year was $7.4m, taking its retained income to $49.1m including $22.2m in retained lamb levies.

During 2013-14, the MLA Donor Company, which manages private investments in red meat R&D with supporting government contributions, attracted a total of $25.9m.

Since its inception in 1999, the company has approved 649 research contracts worth $227.8m.

The MLA had 49,260 members at June 30, 2014, an increase of 1.3pc on the previous year. Almost 42,000 of them produce grassfed beef while 19,262 grow sheep and prime lambs.

MLA's annual general meeting will be held at 2pm on Thursday, November 13, at The Concourse, 409 Victoria Avenue, Chatswood, Sydney.

Vernon Graham

Vernon Graham

is the group editor of Fairfax Agricultural Media
Date: Newest first | Oldest first


5/11/2014 6:12:08 AM

Producers were also making some of the lowest amounts in a long time, yet the levy price did not reflect that...
5/11/2014 7:40:10 PM

An absolute disgrace that such predatory profiteering through compulsory levies paid by cattle producers is supported by our federal agriculture minister. A 13 % take by a group that is supposed to be supporting and improving a cattle industry that had better returns 30 years ago without such nonsense to support. Why aren't these levies scrapped or at least linked to producer profit from cattle production and processor profit from buying cattle and exporting meat? and where is the retailer contribution? No doubt MLA will be paying the $7.4m surplus back to producers.
13/11/2014 10:00:14 AM

The leaches still get their blood and what do we get in return??


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