The document discusses the upcoming 2015 Sheep & Beef Levy Referendum that will take place in August and September. It outlines that the current levy orders expire in 2016 and farmers will vote on whether to approve new six-year levy orders from 2016-2022. It provides background on the referendum process and principles, an overview of the draft offer that will be presented to farmers, and proposed levy rates for sheep and beef under the new orders.

1. The 2015 Sheep & Beef Levy Referendum
Background & update

2. Why we need to hold a referendum
• B+LNZ operates under the Commodity Levies Act 1990 (CLA)
• The CLA enables a commodity levy order to be created
• A levy order lasts six years – current orders expire April 2016
• There are two separate levy orders (beef and sheepmeat), creating
two separate levies
• Sheep, beef and dairy farmers vote to create a new levy order (or
cease operations)
• A registered farmer’s (a farmer who has put themselves on the
B+LNZ electoral roll) vote is assessed in two ways:
– One farmer, one vote
– Weighted stock units (250 sheep, 50 Beef Cattle, 100 Dairy Cattle)
• Both ‘tests’ must be passed (>50% support from those who vote)
for a new levy order to be created
• A successful Ref15 vote will means B+LNZ can continue to operate
for a further six year cycle from 2016-2022

3. Vote outcomes
Yes = new levy order for the
period 2016-22
No = B+LNZ ceases

4. When is the 2015 referendum?
The 2015 Sheep & Beef levy referendum will be held
over a six week period in August and early September.
Referendum window
 6 weeks spanning August – early Sept
 Vote period 4 weeks
Launch
 3 August at Farmer Council
conference

5. Why then?
• Time required to enact a new levy order
before April 2016 (2016-22) – legal and
parliamentary process
• Need to conclude Market Development
negotiations and communicate outcome
to farmers as part of the Ref15 ‘offer’
• Recognise on-farm activity around the
country

6. Referendum Working Group
• James Parsons
• Anne Munro
• Kirsten Bryant
• Martin Coup
• Scott Champion
• Richard Wakelin
• Cros Spooner
• Jan Keir Smith
• Kelvin Whall (Project Manager)
• Sam Halstead (contracted PR)

7. Ref15 Framed from a farmer point of view
Farmer focus

8. From farmer feedback we have identified the
following principles for Ref15:
• Keep messages and materials brief and simple
• Have a short referendum period
• Have several ways for farmers to engage with
Ref15 (not just a roadshow, i.e. face-to-face
meetings)
• Utilise Farmer Council and regional networks
• Create a regional focus/’value proposition’
• Engage others in the sector
Principles for Ref15

9. • Referendum Working Group active since Sept 2014
• Budget in place to support Ref15
• PR & communications support in place
• Timeline confirmed
• Communications plan in place
• Indicative levy levels 2016-22 for consultation
• Farmer Council National Executive briefed and
engaged
• Key messages in draft form
• Ref15 offer being built
Activity to date

10. What next? – before the launch
• Farmer Council conversations – key sounding
board
• Stakeholder organisations engaged
• Key messages confirmed – with regional
customisation
• Materials development – simple and concise
• Enrolment campaigns – electoral roll
• Consistent Ref15 messages through ‘business as
usual’
• Prepare regional delivery and roadshow
• Deliver the day-to-day B+LNZ operations really well!

11. What happens in the active
referendum period?
• Materials distributed to farmers – roadshow schedule
and online info
• Active media – raise awareness, call to action
• Online channel for depth and detail
• Regional roadshow
• Delivered concurrently within a 7-10 day period
• Involving regional Directors, staff and local Farmer
Council
• Key event in each region plus a mix of others
• Voting by post and online
• Telephone calls within voting period to remind farmers to
vote

12. What is happening right now?
• Market Development negotiations
• Meeting key stakeholders
• Levy rate testing
• Farmer Councils and FC Exec – teleconfs
• Developing regional messages and planning
regional delivery
• Dairy engagement strategy
• Look & feel for Ref15
• Farmer online consultation tool development
and testing

13. The 2015
Sheepmeat & Beef levy referendum
DRAFT OFFER FOR CONSULTATION

14. Achievements

15. The draft offer 2016-22
Current
strategic
priorities
Plus
• A new market development initiative co-funded by processors
• Increased focus on environment
• Increased focus on Health & Safety

16. Proposed levy investment
Sheep levy
• 60c/hd no change for first 2 years of new levy order.
• Increasing to 65c in 2017/18
• Increasing to 68c in 2019/20
Beef
• $4.40/hd no change for first 2 years of new levy order.
• Increasing to $4.80 in 2017/18
• Increasing to $5.10 in 2019/20
Increased levy investment mooted to commence in 2017/18 based on a
successful negotiations on a new market development with processors.
Failure to reach agreement will see a review of offer. Likely no increase
to levy.

17. What do I pay now?
Current levy rates collected at slaughter (to expire in April 2016);
• Currently the average (all classes) Sheep & Beef farm invests $1,518
per year in levies. This is made up of;
–Lamb $960 (approx. 3.3c/kg)
–Sheep $199 (approx. 2.4c/kg)
–Beef $361 (approx. 1.6c/kg)
• Currently the average dairy farm invests $343 per year in beef levy
from cull animals. This represents approx. 2.3c/kg
Current investment

18. What might I pay 2016-22
• No change in either sheep or beef levy to begin the new levy order in 2016
• An 8c per head increase in sheep levy is proposed during the period to 2022, with full
implementation in 2019/20.
• A 70c per head increase in beef levy is proposed during the period to 2022 with full
implementation in 2017/18.
• The average Sheep & Beef farm (all classes) would invest (at full implementation in
2017/18) $1,730 per year in levies – an increase of +$212, this made up of;
– Lamb $1,087 (approx. 3.8 c/kg, up 0.5c/kg)
– Sheep $225 (approx. 2.7c/kg, up 0.3c/kg)
– Beef $418 (approx. 1.8c/kg, up 0.2c/kg
• The average dairy farm (at full implementation in (2017/18) would invest $398 per
year in beef levy from cull animals – an increase of +$55, representing approx.
2.7c/kg (up 0.4c/kg). Note: for comparison - the average dairy farm pays $5,500 per
year in milksolids levy to DairyNZ.
Possible new levy order