THE Australian Lot Feeders Association has joined the list of industry groups undertaking a review of the compulsory $5 transaction levy – with growing numbers of cattle on feed going under the microscope.

ALFA’s review has been lower key than Cattle Australia’s review of the grassfed levy, which has involved consultations across the country.

A committee has been set up with ALFA president Grant Garey, vice-president Tom, directors Paul Vogt and Andrew Talbot and Whyalla Beef general manager Tony Fitzgerald. It has also commissioned consultancy firm ACIL Allen to do some research and report back to the board.

Speaking to Beef Central at the recent BeefEx conference, Mr Garey said the board hoped to have a report by February and any changes will be recommended to Meat & Livestock Australia at next year’s AGM.

“The first question we are trying to answer is: Is there a case for change?

“We have already done a lot of work and we think there are parts of the levy that are probably fine and other parts that are going to need more revenue as we go forward.”

About the grainfed levy

Much like the grassfed cattle transaction levy, the grainfed levy is a $5 payment made with each transaction – the proceeds are then divided up between Meat & Livestock Australia marketing, research, Animal Health Australia and the National Residue Survey.

Mr Garey said some parts of the levy are going to need more funding.

“The National Residue Survey, for example, which does all the residue survey testing for our products that then go into international markets. It is a critical part of our market access and going to need more funding as we get further towards FY29,” he said.

“We need to assess how that looks and how much how much money that might need.”

More revenue coming from grainfed

Perhaps one of the biggest factors to come under the microscope in the grainfed levy review is the ever-increasing revenue. While the rate has stayed at $5, the number of transactions has increased significantly as feedlots continue to grow.

Total Grain fed levy paid has increased by 46.9pc, from $13,039,730 in FY15–16 to $19,155,540 in FY25–26.

“We have to look at that and try work out what it is going to do over the next period of time and offset the increase in the number of transactions versus the actual $5 and the requirements in the different portions of the levy,” he said.

“So we have ACIL Allen working on that for us over the next calendar year and we will hope to have some answers next year.”