Levy questions answered

GROWERS GET INFORMED ON R&D VOTE

Dried grape growers will this year vote on a proposal to increase the industry’s research and development levy.

Here, we take a look at what this means for growers on an individual basis, as well as what an increase in the levy could mean for the future of the industry.

What is the Dried Grape Research and Development Levy? Who pays it and how is it collected?

The Dried Grape Research and Development Levy (R&D Levy) is the core mechanism for advancing the dried grape industry. The levy is a compulsory payment made by all dried grape growers, based on tonnages. Levy funds are entrusted to Hort Innovation, which uses industry-specific investment plans and guidance from DFA to determine the projects the levy will fund. The R&D Levy is the only levy matched by the Federal Government.

What is the current levy and what is the proposed change?

The R&D Levy is currently $11/tonne. At the 2022 Annual General Meeting of DFA, growers proposed and voted on a change to the R&D Levy to $20/tonne.

When will the new proposed levy come into effect?

If supported it’s anticipated the new levy rate will come into effect in the 2025 season.

Why does the levy need to change?

Research is a critical component for productivity gains.

The R&D Levy has not been increased for more than 30 years and has not kept pace with increasing costs and the overall contributions required for funding quality research and development, and is lagging behind many other similar industries. It’s been a tough couple of years for dried grape growers, what does the proposed levy increase mean in real terms for growers?

The levy is based on growers’ tonnages and, when looking at the average returns, a $20/tonne levy represents an actual payment of less than 1 per cent of earnings. The R&D Levy presents an opportunity to undertake critical research into ways that growers can thrive, particularly in challenging conditions. How will the levy be used?

The dried grape industry is focussed on continuous improvement to deliver on domestic and export market demands and improvements in profitability and grower returns. For this to occur, the industry is reliant on research and development for new leading edge technologies, equipment and vine improvements to maintain and increase quality and capacity of production. Benchmarking has shown that it’s possible to consistently produce 10 tonnes of dried grapes to the hectare. R&D on production could increase this figure even further.

Through the DFA’s Innovation Committee and from consultation across the industry, future dried grape projects and activities that this funding will be used for include:

- Increasing productivity and management through development and monitoring of new dried grape varieties and trials of new technologies combined with innovative trellis designs

- Demonstration sites leading to overall adoption of sustainability practices to meet export market expectations

- Design and development of automated management and monitoring systems that enhance yield, quality and productivity

- Uptake and adoption of new technologies and innovation through extensions and communications

- Building a comprehensive dried grape industry database to ensure more accurate support and demand forecasts to ensure continuity of market supply

What happens next?

DFA will continue consultation and share information about the proposed R&D Levy increase before voting takes place in October this year. It’s important that growers take the time to vote to help shape the future of the Australian dried grape industry.v

Do you have any comments or questions about the proposed increase to the R&D Levy?

Email ceo@driedfruitsaustralia.org. au or call the office on (03) 5023 5174.

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