potatoes

12
Uncovering the potato levy
THE NATIONAL POTATO LEVY SYSTEM IS VITALLY IMPORTANT TO THE HEALTH OF THE INDUSTRY,
PROVIDING POTATO GROWERS ACROSS THE COUNTRY WITH THE LATEST R&D THAT AIMS TO
IMPROVE PRODUCTIVITY AND PROFITABILITY IN THEIR BUSINESSES. BUT HOW DOES IT WORK?
POTATOES AUSTRALIA TAKES A CLOSER LOOK AT THE STRUCTURE AND IMPLEMENTATION OF THE
LEVY SYSTEM.
When you’re out on the farm
growing potatoes, the levy
system is also hard at work,
investing in R&D projects that
aim to benefit growers. While
the National Potato Levies
were initiated by growers, the
intricacies of the system may
not be widely understood.
With Horticulture Innovation
Australia Limited’s (Hort
Innovation) recent transition to
a grower-owned Research and
Development Corporation, now
is a good time to take a fresh
look at the system that manages
your levy funds.
The potato levy system was
developed at the request of
the potato industry to provide
valuable R&D that would
benefit the entire potato growing
community. Over the years, the
system has made investments
in a wide range of projects, from
pest management studies to
consumer research.
processing potatoes in Australia.
The charge is set at 50 cents
per tonne for both types and
must be paid by the producer of
fresh potatoes (the person who
owns the potatoes immediately
after harvest) or the owner of
processing potatoes (the person
who owns the potatoes when
R&D Service Provider
Benefits
processing begins).
If a producer of fresh potatoes
sells their produce through a
first purchaser, buying agent,
selling agent or merchant, this
intermediary must pay the levy
and submit all return forms on
behalf of the producer.
If a producer sells fresh
Grower & Processor
Pool 1
1 - 5 Year scope
Levy funds
potatoes to a processor, the
processer is the intermediary
and must pay the levy and
submit all return forms on behalf
of the producer.
If a producer sells fresh
potatoes direct to the consumer
at stalls or markets, they must
pay the levy and submit all
return forms themselves.
The Federal Government also
provides funding in addition to
the levy payments. This doubles
the funds Photography available to by invest Peter in Jarvis.
research projects that address
the industry’s toughest issues,
such as pest incursion control,
biosecurity and improving
market access. Once paid,
these funds are managed by
Horticulture Innovation Australia
Limited (Hort Innovation), which
seeks grower and industry advice
to allocate the funds to the most
valuable research projects.
Two pools of funds
Paying the levy
The levy is paid by growers who
produce and sell either fresh or
Government investment
HIA Advisory Mechanism
& Procurement Process
The key update to the system is
that funding will now be split into
two pools.
Pool 1 is funded by grower
levies with contributions from