Banana Industry Levy

Banana Industry Levy

The Banana Industry Levy is a compulsory national levy, introduced on 1 July 2008 at the request of the banana industry, through a ballot of all growers.

Most of the levy is used to fund marketing and research and development (R&D) carried out by Horticulture Innovation Australia (HIA).

The levy rate from 1 July 2015 is 2.45c/kg and includes a 0.75c/kg as the Emergency Plant Pest Levy.

 

Banana Levy Rate to Increase from 1 April 2017

In 2016, growers nationally voted on an increase to the banana levy for Panama TR4. 

The Australian Government made the resulting levy increase of 0.49 c/kg into a regulation in late February and it will be in place from 1 April 2017.

It will take the total levy from 2.45c/kg of bananas to 2.94c/kg.

 

The components of the Banana Industry Levy will then be as follows:

 

Levy Amount

Purpose

 

1.69c /kg

R&D and Marketing

 

0.75c /kg*

Emergency Plant Pest Response (EPPR): For repayment of the industry’s share of the cost of the national Banana Freckle eradication program in the NT.

 

0.50c /kg*

Plant Health Australia (PHA) levy: Mostly to repay the industry’s share of the costs of buying the TR4 infested farm in Tully.

 

Total = 2.94c /kg**

 

 

The above compulsory levy is provided to the Department of Agriculture and Water Resources, not to ABGC.  The Department then provides it to Horticulture Innovation, for Marketing and R&D, and to PHA for the other two components.

*Both the most recent levies are temporary: The EPPR levy will finish after the Freckle Response costs are repaid. The bulk of the PHA levy is for repaying the Australian Government the refundable grant used to buy the infested farm. That levy (apart from the pre-existing PHA membership component) will be reviewed annually and cease when no longer required.

**The current levy total is 2.45c /k

 

ABGC Membership & The Levy

The ABGC membership fee is separate to the banana industry levy. For information on the ABGC’s membership fee please see our membership page.

 

 

Further information is also available from the  Australian Government Department of Agriculture and Water Resources website http://www.agriculture.gov.au/ag-farm-food/levies/rates/bananas, or from

 

Jim Pekin, ABGC

 

jim.pekin@abgc.org.au