Banana levy rate to decrease from 1 July 2019

The components of the Banana Industry Levy are currently as follows, and ABGC has requested the Australian Government to remove the 0.75c/kg Freckle levy from 1 July 2019.

Levy AmountPurpose
0.75c/kgEmergency 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 first TR4 infested farm in Tully
1.69c/kgR&D and Marketing: 0.54c/kg for R&D and 1.15c/kg for Marketing
Total2.94c/kg**

** This will be 2.19c/kg from 1 July 2019.

In December 2018, ABGC formally asked the Australian Minister for Agriculture to change the regulation so that the Freckle Levy of 0.75c/kg is reduced to zero from 1 July 2019. This will save banana growers 0.75c/kg. This means that on 1 July 2019 the total compulsory Levy will be reduced from 2.94c/kg (44.1c per 15kg carton) to 2.19c/kg (32.85c per 15kg carton) – a reduction of 0.75c/kg (or 11.25c less per 15kg carton).

* The current total rate has been in place since 1 April 2017 when the PHA levy rate was increased to its current (0.5c/kg) rate to repay the industry’s share of the costs of buying and maintaining the first TR4 infested farm in Tully. Prior to that increase, there was a small amount of levy (0.0103c/Kg) set by Regulation to pay for the pre-existing commitments – Torres Straight Exotic Fruit Flies Eradication Response, PHA membership and Government levy collection.

Formal advice on banana levies can be seen at this link – http://www.agriculture.gov.au/ag-farm-food/levies/rates/bananas

Further information:

Jim Pekin. CEO, ABGC

Email – jim.pekin@abgc.org.au

Phone – 07 3278 4786