INDUSTRY ANNOUNCEMENT
21 March 2024
Proposed change to the national Australian lychee grower levy
On behalf of the Australian lychee industry, the Australian Lychee Growers Association (ALGA) is proposing to change the existing lychee levy structure to provide funding & resources to assist in strengthening and expanding the scope of biosecurity response arrangements through a Plant Health Australia levy.
ALGA as the peak industry body for the Australian lychee industry will notify all lychee levy paying growers via the industry’s various avenues of communication seeking grower support of the proposed changes.
The change will not affect the cost of the existing levy which growers currently pay and the industry will not be imposing any additional amount of levy in order to fund the biosecurity management obligations of the industry. ALGA believes that by slightly changing the existing lychee levy structure, these obligations will be covered now and in the future. The industry’s biosecurity obligations have previously been met by ALGA and its members.
The existing lychee levy and charge was first introduced 1 February 2004. Lychees which are produced in Australia and sold by a producer or exported attract a levy or charge. The current levy is collected on a per kilogram basis of 8 cents per kilogram with the following components:
•5.5 cents per kilogram for Research & Development and
•2.5 cents per kilogram for Marketing
ALGA will be submitting a request in respect to lychees, that the Australian Government introduce a Plant Health Australia Levy (of 0.50 cents per kilogram) and reduce the rates of both the R&D and Marketing levies (each by 0.25 cents per kilogram). This would retain, but effectively redistribute the current 8 cents per kilogram levy with levy components as follows:
•5.25 cents per kilogram for Research & Development
•2.25 cents per kilogram for Marketing and
•0.50 cents per kilogram for Plant Health Australia Biosecurity
The industry is in a growth period with new plantings reaching medium to full production within the next 5-6 years. The anticipated increase in annual tonnage will increase future levy funds collected, with ALGA forecasting that the redistribution of the current levy will not adversely affect the industry’s R&D and Marketing programs over the coming years. The increase in production will compensate for the initial reduction in R&D and Marketing revenue resulting from the proposed changes.
Growers will be emailed a link to a short survey by which they will be able to vote, indicating whether they support or do not support the proposed change. It is extremely important that all levy paying growers are made aware of these changes and take part in the voting survey. The industry will need to demonstrate to the Australian Government that the majority of lychee levy payers support the change.
For more information contact ALGA on