Lotfeeders examine $5 grainfed cattle transaction levy as cattle-on-feed numbers rise

# What this is about Association (ALFA) has launched a focused review of the compulsory $5 grainfed cattle transaction levy. The trigger is simple: the number of cattle on feed has grown, so the flat $5 levy per transaction is generating a much larger revenue pool than it did a decade ago.

# Who is reviewing it and how ALFA set up a committee to manage the review. Named members include ALFA president Grant Garey, vice-president Tom (surname not provided), directors Paul Vogt and Andrew Talbot, and Tony Fitzgerald, general manager at Whyalla Beef. ALFA has hired consultancy ACIL Allen to research the levy's current and projected finances and report back to the ALFA board.

The committee intends to produce a report by February and, where appropriate, recommend changes to Meat & Livestock Australia (MLA) at MLA's next annual general meeting.

# How the grainfed levy works now The levy is a flat $5 payment tied to each cattle transaction in the grainfed sector. Proceeds are allocated across several bodies: MLA for marketing and research, Animal Health Australia, and the National Residue Survey (NRS), which conducts residue testing required for international market access.

# Why the review is happening now Even though the levy rate has not changed, the number of transactions has increased substantially as feedlot capacity and cattle-on-feed numbers have grown. ALFA points out that this growth alters how the dollars are divided against recipients' actual funding needs.

ALFA specifically flagged the National Residue Survey as an area likely to need more funding approaching FY28–29 because residue testing underpins market access for exported products.

# The financial change to date

# What ACIL Allen will do ACIL Allen has been commissioned to model the levy's future trajectory, quantify how increased transaction numbers affect funding allocations, and identify where funding levels may be insufficient relative to expected responsibilities. ALFA expects the consultancy's findings to help answer the question "Is there a case for change?" and to provide options for adjusting levy design or allocations.

# What to expect next ALFA aims to have the consultancy report by February. Any recommended adjustments would be forwarded to MLA for consideration at its AGM. The review is described as lower-key than the parallel, broader review of the grassfed cattle transaction levy, which has included country-wide consultations.

# Practical implications for producers Producers who pay the levy should expect analysis and possible change proposals next year. Key issues likely to shape debate are whether the flat-rate approach continues to match sector needs as the grainfed sector grows, and whether specific levy recipients (notably the NRS) require increased funding to meet obligations tied to market access.

# Bottom line ALFA's review responds to a clear funding shift driven by rising cattle-on-feed numbers. The association is seeking independent modelling to determine whether levy mechanics or allocations should change and will present any formal recommendations to MLA following the study and its internal deliberations.