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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 5: Poultry Sector

Introduction

This section details the recovery costs of industry goods for primary processors of poultry.

Costs to be recovered from sector

The costs of services provided to the sector are

Service	Cost	Payable from
New Zealand Standards and Systems	$226,074	All domestic and export processors
Market Access	$62,850	Export processors
Export Standards	$34,395	Export processors

Current situation

Processors of poultry, through the Poultry Industry Association, currently contribute a total of $85,000 to a residue monitoring programme.

Cost Recovery options

1. Fixed annual charge

All processors (12) $18,840 p.a.

Export processors (3) $32,595 p.a.

TOTAL $51,434 p.a.

Fixed fees could be differentiated on a large, medium, small business size.

2. Levy based (birds processed)

All processors (56 million birds) $0.004 per bird

Export processors (1.12 million birds) $.087 per bird

A levy based system of differential charging on business size would result in a large processor paying around 60% of the total cost, medium processors between 10 – 20% each and small processors (9) sharing around 5% of the total costs.

Option to include secondary processing of poultry primary processors costs

If secondary processing costs are added to primary processing the rates would be:

3. Fixed annual charge

All processors (12) $20,202 p.a.

Export processors (50) $33,096 p.a.

TOTAL $53,298 p.a.

4. Levy based (birds processed)

All processors (56 million birds) $0.0043 per bird

Export processors (1.12 million birds) $0.87 per bird