WA farmer part of dairy levy committee

Mr Evans, who has been dairy farming for 45 years and farms with wife Sue and son Grant at North Jindong near Busselton, is one of nine levy payer representatives on the committee.

They, along with independent chairman John Lawrenson and five industry representatives previously appointed, will determine whether a change to the level or structure of the levy is recommended and thereby, whether a poll of levy payers is to be held.

The Dairy Service Levy is collected from farmgate milk cheques by processors and goes to Dairy Australia to fund its activities, including research, development and extension (RD&E).

Federal government funding for Dairy Australia is linked to the amount raised by the levy.

The last poll in 2012 cost Dairy Australia $750,000 to hold and determined the levy should be increased by 10 per cent.

From 2013-14 the levy has been 2.868 cents on a kilogram of milkfat and 6.991c/kg on protein - equivalent to about 0.352c/litre of milk, according to Dairy Australia.

The next compulsory poll to consider an increase was due next March until a farmer-supported amendment to the Dairy Produce Act 1986 passed in federal parliament last March.

That amendment removed legislated compulsion to hold a levy poll every five years and placed responsibility for determining if the levy should be increased - triggering a poll of levy payers - with the newly-formed advisory committee.

If the committee determines no levy increase is needed but 15 per cent of levy payers disagree, they can force a poll to be held.

With the industry in a farmgate-price crisis nationally, and nine WA farmers facing having to sell herds and leave the industry if Brownes Dairy and Harvey Fresh do not reverse decisions to stop collecting their milk, the committee's assessment of farmers' ability to pay a levy will be critical.

At the same time, the WA dairy industry faces a unique situation where its RD&E is likely to become increasingly dependent on the Dairy Service Levy.

Western Dairy, Dairy Australia and the Department of Agriculture and Food WA (DAFWA) are more than 12 months into a three-year agreement that will ultimately see an end to DAFWA funding and Western Dairy responsible for RD&E in the State.

On Tuesday Mr Evans acknowledged the difficult situation the committee faced.

"On one hand, Dairy Australia has taken a massive cut to its revenue (constrained levy funding and reduced government funding) which impacts on its ability to fund various initiatives, including RD&E," Mr Evans said.

"On the other hand, we have (some) farmers in debt and the last thing they want to think about right now is paying an increased levy, or any levy for that matter. I'm also aware there is a group (of dairy farmers) who believe we shouldn't be paying any levy at all and I'm sure they will make themselves heard.

"I think it's going to be interesting," he said.

Mr Lawrenson, who also chaired the dairy levy poll process review, said that in appointing levy payer representatives, the existing committee members had "done our best to ensure a broad representation from across the dairy industry".

"This committee will play a vital role in determining what level of funding will be required to support the long-term research, development and extension strategy for the industry," Mr Lawrenson said.

"Its decisions will have broad-reaching implications for the Australian dairy industry."

Mr Evans, who along with Forest Grove dairy farmers Steve and Brad Noakes, sells his milk direct to Woolworths for its Farmers' Own label, has a strong history of representing WA dairy farmers.

He has been a director and chairman of Western Dairy (2005-2007), president of WAFarmers' dairy section (2007-2012), director of Australia Dairy Farmers (2007-2014) and director of the Australia Dairy Industry Council (2011-2014).

His farm, which runs a herd of up to 850 cows, was WA Dairy Business of the Year in 2010 and 2011 and National Dryland Business of the Year in 2011.