Proposed increase in R&D investment

12 January 2010

At its recent Annual General Meeting, the Goat Industry Council of Australia (GICA) discussed the structure and adequacy of the Goat Transaction Levy (GTL) and the levy income investment portfolio serviced by Meat & Livestock Australia (MLA). The GTL currently totals 37.7 cents, of which 16.7 cents is directed to marketing activities and 10.5 cents to research and development (R&D) initiatives. The balance of the levy is directed to funding Animal Health Australia and the National Residue Survey for disease and residue R&D and surveillance programs, respectively.

A paper was presented to GICA (by MLA) outlining proposed investment under the MLA goat meat Marketing and R&D Strategies, as well as goat-specific initiatives from MLA's Live Export Program. This information, together with projected income and reserve balances for marketing and R&D for the period 2009 to 2012, was provided to allow GICA to make an informed decision regarding the adequacy of R&D and marketing income from the GTL.

Consideration was also given to motions from the Western Australian Goat Meat Industry Council and the NSW Farmers’ Association Goat Committee regarding the GTL, both of which proposed reapportioning the R&D and M components of the levy in order to generate more R&D income.

As a result of the discussion, and the support conveyed in the two state farmer organisation motions, GICA formally moved that 16.7 cents to be directed to MLA R&D (to be increased from 10.5 cents) and 10.5 cents to be directed to MLA marketing (to be decreased from 16.7 cents). The levy total will remain at 37.7 cents.

The reapportionment will allow priority research to be undertaken in a number of key areas including:

• Supply chain development to address issues currently limiting the consistency in quantity and or quality of product supply to the domestic and export goat meat markets, and the live export market.
• Nutritional analysis (profiling) of Australian goat meat
• The pursuit of a Minor Use Permit for the use of a pour-on for the control of external parasites, including lice, on goats.
• Development of an advanced rangeland goat module for the Going into goats guide to address issues such as production, environment and animal welfare
• Development of business tools to help producers in making critical tactical and strategic decisions to improve their business performance

Importantly, the levy reallocation will maintain an appropriate level of income for goat meat marketing activities which, when combined with existing reserves, will allow the industry to take advantage of marketing opportunities as they arise in the foreseeable future.

The proposed levy change now requires formal approval from the Department of Agriculture, Fisheries and Forestry (DAFF), via a submission to the Department’s Minister.

GICA is now consulting with industry to ensure wide spread support for this initiative and would welcome your feedback.