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A levy to increase pork marketing efforts will have no effect on supermarket prices

May 9, 2012

An increase in the slaughter levy paid by pork producers that was flagged in last night’s Federal Budget isn’t a secret “Bacon Tax” and will have no effect on the prices that consumers pay in the shops, Australian Pork Limited’s CEO Andrew Spencer said today.

Last night the Twittersphere was abuzz with people discussing the pig slaughter levy, with hundreds of people tweeting about a so-called “bacon tax”.

However – as reported in SouthBurnett.Biz on November 17, 2011 – pork producers voted to increase the slaughter levy themselves at Australian Pork Limited’s Annual General Meeting.

Currently the levy on each slaughtered pig received by Australian Pork Limited (but collected via the Federal Government) is $2.25 and is split into two parts: $1.00 for R&D and $1.35 for marketing.

This amount has remained the same for 15 years.

But Australian Pork Limited says its value has been considerably eroded over time by inflation and pork producers agreed when a proposal to increase the levy was put to last November’s Annual General Meeting.

The increase, reported in last night’s Budget, is only relevant for the marketing portion of the levy and will expand that portion from $1.35 to $2.25. This increase will occur in three 30 cent tranches over four years from July 1, 2012.

However, this cost will be absorbed by the producers themselves and will have no effect on pork prices at supermarket checkouts.

Monies raised by the levy go to the industry’s peak body, Australian Pork Limited, to fund marketing, research and policy activities conducted on behalf of pork producers.

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