THE challenging marketing position faced by the meat and livestock industry is shaping up as the biggest obstacle to a strong vote in favour of retaining the current $5 cattle transaction levy.
With the Australian dollar hovering above US93c this week and listless consumer demand in key export markets including Japan, Korea and the US, prospects for the beef sector have not looked as serious since 2002 when Japanese consumers abandoned beef following the discovery of BSE (mad cow disease).
Observers say the current market circumstances could hardly have made a more difficult background to seek grassroots industry support for the current $5 levy at today’s Meat and Livestock Australia (MLA) annual general meeting in Darwin.
On the positive side, the rate of voter participation and registration to secure full voting entitlements has been extremely high by industry standards.
More than 5000 producers have already voted by proxy on the levy resolution – a record for any MLA annual meeting – representing between 30 and 50 per cent of the national herd.
The key resolution in Darwin is whether producers endorse the cattle transaction levy and export charge continuing at $5 a head beyond December 31, 2010.
Once a grassroots result is delivered, it will be passed to industry peak councils which will compile a report to present to Agriculture Minister, Tony Burke, who has ultimate control over the outcome.
His decision will be influenced by the proportion of AGM voters in favour of maintaining the levy, and the rate of participation in the vote among industry stakeholders.
Members of the levy review committee have spoken at more than 50 industry events attended by 6000 industry stakeholders across the country encouraging producers to participate in the vote, and explaining the reasons behind their recommendation.
Full MLA meeting report details in next week's The Land.
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