DAIRY Australia recorded a $2 million loss despite an increase in the compulsory producers levy according to its 2012-13 annual report.
Dairy Australia’s milk levy increased $1.7 million on last year to $32.8 million, the increase was as result of the 10 per cent increase in levy which came into effect on July 1, 2012.
But low milk production saw only a 5 per cent increase from this revenue on last year, which makes up nearly 60 per cent of Dairy Australia’s total income.
The dairy service company suffered a 3 per cent drop in total revenue and 10 per cent increase in expenditure and was forced to draw $2.08m from their reserves.
The drop in revenue was due to a one-off $2.8 million payroll tax refund granted to Dairy Australia in 2011-12 for a charitable status.
Dairy Australia invested $58.2 million on research, development and industry services to support the future of dairy for milk producers in 2012/13, 10 per cent more than in the last year.
They spent $23.7 million or 13 per cent more on farm productivity and delivery programs than last year, which made up the highest area of expenditure.
And also more than doubled spending on industry promotions to $3.7 million and spending on industry people and capability programs rose by 79 per cent to $3.3 million, staff salaries were up 12 per cent.
The managing director Ian Halliday received a $24,830 pay rise and took home $376,350 for the financial year.
Dairy Australia chairman Max Roberts said more than 70 projects were rolled out for producers by the dairy body.
«Dairy Australia has been assisting levy payers to cope with challenges through practical solutions, direct action programs and on-the-ground support,» he said.
Matching government payments for research related expenditure was also up by 3 per cent to $19.2m in the same period.
But the external contributions from the Victorian Government was down from $1.1 million to $184,000.
The now-abolished Commonwealth Department of Climate Change and Energy Efficiency contributed $600,000 to the dairy body.
The report also revealed a 4 per cent drop in the number of farmers contributing to the levy Australia-wide which fell from 8753 Group A members last year to 8391 in 2013-13.
Dairy Australia also notified its members of the annual general meeting scheduled to take place in Melbourne on November 29.
Source: Weekly Times Now