Cattle Industry Fund
Five Year Management
Plan
2011-12 to 2017-18
(A requirement of the Primary Industry Funding
Schemes Act 1998)
Contents
1.
South Australia’s Cattle Herd ......................................................................... 1
2.
Contributions to the Fund .............................................................................. 1
3.
Investment of the Fund ................................................................................... 2
4.
Application of the Fund .................................................................................. 2
4.1
Industry Programs ................................................................................ 3
4.2
SA Cattle Advisory Group and Fund Administration Expenses ....... 3
5.
References ....................................................................................................... 3
6.
Cattle Industry Fund – Five Year Budget (2011-12 to 2017-18) ................... 5
1.
South Australia’s Cattle Herd
At the end of June 2012, the Australian cattle herd (including dairy) was estimated to
be at 29.5 million head. Predictions beyond this suggest, that the national herd will
increase by around 1% the following year (29.8 million head) and then plateau at 30
million head for the next two years (ie 2013-14 and 2014-15) (MLA, 2013).
Thereafter, ABARES suggests that the national herd will decrease by around 5% to
28.5 million head, and then stabilise for the next two years at around 28.6 million
head (ABARES, March 2013).
Females of breeding age account for around 52% of the total herd (ABS, 2012).
Within South Australia, for the purpose of estimating the potential number of National
Livestock Identification (NLIS) devices sold (which is the point at which Cattle
Industry Fund contributions are collected), it has been assumed that South
Australia’s total breeding herd is around 4.3% of the total national breeding herd.
This equates to a breeding herd (beef and dairy) of around 655,000 head (Table 1).
Table 1
Estimated Size of South Australia’s Breeding Herd
Period
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
Sources:
Estimated No. of
Breeding Cattle
665,000
665,000
670,000
670,000
636,000
638,000
638,000
% Change
0.1%
0.7%
0.0%
-5.3%
0.4%
0.0%
ABARES 'Agricultural Commodities' Vol 3 No. 1 March Quarter 2013
MLA Australian Cattle Industry Projections Mid Year Update 2013
ABS, 71110DO001_201112 Principal Agricultural Commodities, Australia, Preliminary, 2011-12
report
ABS, 71110DO001_201011 Principal Agricultural Commodities, Aust Prelim 2010-11
To calculating Cattle Industry Fund contributions for the next five years, it is
assumed that a marking rate of 90% occurs.
2.
Contributions to the Fund
Under the Primary Industry Funding Schemes (Cattle Industry Fund) Regulations
2000, a contribution to the Fund is payable by a person who purchases transaction
tags or permanent identification devices (required under the National Livestock
Identification System) to the authorised supplier of the tags or devices (as collecting
agent for the Minister for Agriculture, Food and Fisheries).
An authorised supplier must within 14 days after the end of each quarter furnish the
Minister with a financial statement, including the amount paid to the supplier by way
of contributions by the purchasers of transaction tags or permanent identification
devices.
Page 1 of 5
The contribution rate was increased to $0.65 in 2010-11. As a result of recent
industry consultation in March 2013 about maintaining a viable Cattle Industry Fund
into the future, the contribution rate will increase to $1.10 in early 2013-14. As the
accompanying budget in section 6 highlights, the Fund cannot remain viable at this
new contribution rate for many years. It is expected over the next couple of years
that further consultation both domestically and nationally will occur to remedy this
issue.
Based on the above assumptions and caveat, it is estimated that contributions to the
Fund until 2017-18 will be:
Period
2011-12*
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
Estimated No. of
Cattle Tagged
591,300
578,800
572,500
602,700
602,700
598,600
598,100
Estimated
Contribution
$384,365
$376,204
$662,970
$662,970
$629,750
$631,950
$631,950
Notes:
The 2011-12 figures are based on actual contributions collected for that period.
2012-13 is as per quoted in last year’s report as this is the current budget.
3.
Investment of the Fund
Management of the Cattle Industry Fund is carried out by Biosecurity SA (a division
of PIRSA) on behalf of the Minister for Agriculture and Fisheries, as Administrator of
the Fund. Interest is paid quarterly, and is calculated on the daily balance using the
average overnight cash deposit rate for the relevant quarter.
4.
Application of the Fund
The Cattle Industry Fund may be applied by the Minister for any of the following
purposes:






payment of outstanding claims for compensation made or pending against the
Cattle Compensation Fund under the repealed Cattle Compensation Act
1939;
payment of compensation;
the undertaking of programs relating to cattle, cattle products or any other
aspect of the cattle industry recommended to the Minister by the consultative
committee;
repayment of contributions to the Fund;
payment of the reasonable operating and management expenses of the
Cattle Advisory Group; and
payment of any expenses incurred for administering the Fund (including
expenses incurred in assessing compensation payments).
The SA Cattle Advisory Group acts as the consultative committee for the Fund, and
makes recommendations to the Minister on projects that should be sponsored.
Page 2 of 5
These decisions are based on industry feedback which is reviewed periodically.
Consultation strategies include producer and association submissions, providing
reports to various industry and agri-political associations (such as the now defunct
SA Farmers Federation and SA Dairyfarmers’ Association).
Underpinning these strategies has been the development of a SA Cattle Advisory
Group web page within the Department of Primary Industries and Regions SA web
site. Discussion papers, annual reports, project summaries/final reports and the
management plan are posted on this site.
4.1
Industry Programs
The Fund has predominantly been used to sponsor programs designed to maintain
and improve trade access for livestock and their products. Programs cover disease
control and eradication activities (Bovine Johnes Disease (BJD) and Enzootic Bovine
Leucosis (EBL), trade risk management (growth promotant and antibiotic residues)
and the development of future cattle producers (SA Cattle Assessment School, Dairy
Youth Development and SA Junior Heifer Expo). The Fund has also contributed
towards the implementation of the national livestock identification system (NLIS) for
cattle that is essential for international and domestic market access for these
commodities.
Updates on sponsored programs are required and reviewed. Program managers
and industry are invited to submit project applications annually. Applications are
assessed on their ability to deliver a benefit to the respective industry sector. Where
program applications exceed more than one financial period, the SA Cattle Advisory
Group may provide in principle support for the program, but require an annual
budget for funding approval each year.
In 2011-12, funded programs accounted for 94.1% of total expenditure.
4.2
SA Cattle Advisory Group and Fund Administration Expenses
Administrative expenses incurred by the SA Cattle Advisory Group include members
sitting fees and travel reimbursements, catering, venue hire and executive support.
The Advisory Group meets around four times per annum. In 2011-12 this accounted
for 3% of total expenditure.
A person who has contributed to the Cattle Industry Fund may request a refund for
the contributions made in the financial year immediately preceding the financial year
in which the claim was made. No refunds were requested during 2010-11.
Annual auditing of the Cattle Industry Fund accounted for 2.9% of total expenditure
in 2011-12.
5.
References
ABARES (2013) “Agricultural Commodities: March Quarter 2013’, Vol 3 No. 1
(http://daff.gov.au/abares/publications_remote_content/publication_details?fid=pb_a
gcomd9abcc004201303_11a.xml)
Page 3 of 5
ABS Principal Agricultural Commodities, Australia, Preliminary, 2010-11 (report
71110DO001_201011)
ABS Principal Agricultural Commodities, Australia, Preliminary, 2011-12 (report
71110DO001_201112)
DAFF (2012) ‘Agricultural Commodities – March Quarter 2012’, Vol. 2 No. 1
(www.daff.gov.au/abares/publications)
MLA (2013) ‘Australian Cattle Industry Projections Mid Year Update 2013’
(http://www.mla.com.au/Prices-and-markets/Trends-andanalysis/Beef/Forecasts/MLA-cattle-industry-projections-2013)
Primary Industry Funding Schemes (Cattle Industry Fund) Regulations 2000
(www.legislation.sa.gov.au)
Page 4 of 5
6. Cattle Industry Fund - Budget (2011-12 – 2014-15)
The following budget is indicative and subject to review as required under the Primary Industry Funding Schemes Act 1998.
Opening Balance
Income
Device Contribution
Interest
Other
Total Income
Expenditure
Projects
Dairy ManaJD / BJD Control (net cost)
NLIS
Trade Risk Management
EBL
SA Cattle Assessment School
Dairy Youth Development Project
SA Cattle Health Statement2
SA Junior Heifer Expo
Reducing the Incidence of Dark Cutting
Beef in the SE
SA Dairy Industry Cross Commodity & National
Issues
Livestock SA
Total Project Expenditure
Administration
SACAG Administration
Fund Administration
CAG Executive Officer Services
Tag Refunds
Total Administrative Expenditure
TOTAL EXPENDITURE
Closing Balance
Notes: 1.
$0.65
2011-12
Audited
Actuals
$1,424,278
$1,478,371
$1.10
2013-14
Fwd
Estimates
$1,375,702
$1.10
2014-15
Fwd
Estimates
$1,149,584
$1.10
2015-16
Fwd
Estimates
$859,113
$1.10
2016-17
Fwd
Estimates
$508,012
$1.10
2017-18
Fwd
Estimates
$340,830
384,635
65,497
42,420
492,552
376,204
64,910
662,970
54,636
662,970
53,470
629,750
49,579
631,950
42,521
631,950
38,911
441,115
717,606
716,440
679,329
674,471
670,861
166,397
210,165
233,154
259,505
3,600
304,050
365,150
3,600
341,077
402,749
3,600
351,309
414,831
3,708
361,849
427,276
3,819
372,704
440,095
3,934
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
40,000
173,000
965,426
40,000
173000
987,849
797,944
821,733
14,008
8,223
14,255
5,000
41,486
1,006,912
$859,113
14,428
8,470
14,683
5,000
42,581
1,030,430
$508,012
14,861
8,724
15,123
5,000
43,708
841,652
$340,830
15,307
8,986
15,577
5,000
44,869
866,602
$145,089
24,070
2,500
5,000
$0.65
2012-13
Budget
2,500
2,500
5,000
2,500
2,000
7,000
412,632
513,259
40,000
173,000
888,300
9,634
12,900
3,293
7,725
7,751
13,549
1,500
30,525
543,784
$1,375,702
13,600
7,984
13,840
20,000
55,424
943,724
$1,149,584
25,827
438,459
$1,478,371
Contribution rates beyond 2014-15 may be subject to further industry consultation.
Page 5 of 5