2 April 2024

 

This communication is to notify vegetable and fresh potato levy payers that it is AUSVEG’s intent to keep the vegetable and fresh potato Emergency Plant Pest Response (EPPR) levies active on an on-going basis.

The rationale for this position is strongly informed by the fact that the vegetable industry’s negotiated cost share of the biosecurity response to Varroa mite is able to be met from reserves accrued from the already-active vegetable EPPR levy, with no additional costs imposed on vegetable growers.

In light of the ongoing biosecurity response to Varroa mite, numerous other horticulture bodies are in the process of providing stakeholders with information in relation to these matters. Not all industries are in the relatively-strong position of being able to meet their respective cost share of the Varroa mite response from already-accrued EPPR levy reserves.

The primary intent of the decision to keep the fresh potato and vegetable EPPR levies active is to ensure industry preparedness to fund future biosecurity responses as required. This notification provides further detail.

We welcome your questions and feedback on this matter.

Note: The EPPR levies – which are managed by Plant Health Australia as the national coordinator of the government-industry partnership for plant biosecurity in Australia – are separate and distinct from the Federal Government’s Biosecurity Protection Levy, which AUSVEG is continuing to make representations to government in relation to, in collaboration with the wider horticulture and agriculture industry.

 

Initial activation of the EPPR levies

On 1 October 2018, after consultation with the vegetable and potato industries, the vegetable and fresh potato Emergency Plant Pest Response (EPPR) levies were activated to pay back the debt to the Commonwealth Government for underwriting the vegetable and potato industry’s share of the tomato potato psyllid (TPP) national response costs. Prior to this activation, the EPPR levies were set to zero. Industry was notified of the activation, in line with requirements when levy settings change.

After settling the debt for the TPP response, the vegetable and fresh potato EPPR levies were kept active.

Cost-sharing the Varroa mite response

In June 2022, Varroa mite (Varroa destructor) was detected in New South Wales. Varroa destructor is a parasitic mite that affects European honey bees (Apis mellifera), weakening colonies, and leading to their collapse. This has flow-on impacts for pollination-reliant crops.

Following the initial detection, eradication activities were undertaken based on a Response Plan that was agreed to by Affected Government and Industry Parties. After a 14-month response it was determined on 19 September 2023 that eradication of Varroa mite from Australia was no longer technically feasible.

The national response to Varroa mite has now entered a transition to management phase. The focus of this transition is to:

  • monitor and slow the spread of Varroa mite
  • provide education and training to beekeepers to manage the pest
  • support pollination security.

As the vegetable and potato industry’s representative for the Emergency Plant Pest Response Deed (EPPRD), AUSVEG endorsed these eradication and subsequent transition to management activities through the Consultative Committee for Emergency Plant Pests (CCEPP) and National Management Group (NMG) – which operate under the auspices of Plant Health Australia. The total costs of the response, including eradication and transition to management activities, will be shared up to a limit of $100 million, based on a Category 2 Emergency Plant Pest. This means state and federal governments will share 80% of costs, and affected plant industries 20%.

The vegetable industry’s negotiated cost share of the above is up to a maximum of $800,000.

Because the vegetable and potato EPPR levies remained active following the response to TPP, the vegetable industry has accrued sufficient reserves to settle its share of the Varroa mite response cost (i.e. an upper limit of $800,000). This means there will be no additional cost burden to vegetable growers to pay the industry’s share of the Varroa response costs.

Potato growers are not impacted by Varroa mite and will not contribute to the cost share for this response. This is because potato cropping was determined not to be Affected by Varroa mite. Accrued fresh potato EPPR levy reserves will be held by Plant Health Australia and made available for future Emergency Plant Pest (EPP) responses that impact the potato industry.

Why continue to have active EPPR levies?

Given increasing biosecurity threats and the ongoing risk of new pests entering Australia and impacting vegetable and potato growers, AUSVEG considers there is a real advantage to growers in keeping the vegetable and fresh potato EPPR levies active on an on-going basis. This is illustrated by the fact the vegetable industry’s share of the cost of responding to Varroa mite can be met from reserves accumulated from the active vegetable levy.

Keeping these levies active will ensure the vegetable and potato industries continue to accrue reserves to prepare for and respond to new pests that threaten our industry without the need to turn the EPP levy mechanism on and off every time a response is activated against a new pest incursion.

Review

While AUSVEG is proposing the levies remain active on an ongoing basis, it will continue to monitor progress against the industry’s biosecurity requirements. If circumstances change, AUSVEG will communicate new information and options to growers.

The EPPR levy rates

The current rates for these levies are as follows:

  • Vegetable EPPR levy at a positive rate of 0.01 percent of the value at the point of sale; and
  • Fresh potato EPPR levy at a positive rate of 10 cents per tonne at the point of sale.

Estimated costs for small, medium and large vegetable farms:

  • Small farm ($111,000 in cash receipts) = $11.11 per year contribution
  • Medium farm ($447,000 in cash receipts) = $44.70 per year contribution
  • Large farm ($2,927,000 in cash receipts) = $292.70 per year contribution

Estimated costs for small, medium and large potato farms:

  • Small farm (50 tonnes of potato production) = $5.00 per year contribution
  • Medium farm (500 tonnes of potato production) = $50.00 per year contribution
  • Large farm (5,000 tonnes of potato production) = $500.00 per year contribution

 

Do you have questions or concerns?

AUSVEG is currently conducting a 30-day consultation, seeking industry feedback and queries in relation to this notification.

If you would like further information, or would like to discuss this approach, please contact Zarmeen Hassan, AUSVEG National Manager – Biosecurity and Extension: zarmeen.hassan@ausveg.com.au
Phone: (03) 9882 0277.