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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 9: Animal Feeds Cost Recovery

Introduction

This section details the recovery costs of industry goods for animal feed processors.

Costs to be recovered from sector

The costs of services provided to the sector are:

Service	Cost	Payable from
New Zealand Standards and Systems	$123,545	All domestic and export processors
Market Access	$25,387	Export processors
Export Standards	$35,343	Export processors

Current situation

Current fees are set as a fixed annual charge with distinction being made between operations for domestic consumption ($337 p.a.) and operations where the product is partly or fully exported ($562 p.a.).

Cost Recovery proposal

1. Fixed annual charge

All processors⁴ (426) $290 p.a.

Export processors (175) $347 p.a.

TOTAL $637 p.a.

3. Differential charge/levies

A levy based system may provide a more equitable distribution of costs, however, the cost of setting up and administering a levy system may negate the benefits gained. Consideration could be given to differential charge based on size of business (small, medium, large). Currently NZFSA does not have enough accurate information available to base such a charge on.

4. Recovery from primary processors

This option involves apportioning secondary processing costs across primary meat processors

5. Impact of the NZFSA review of Animal Feeds

The changes proposed in the review of animal feeds, if agreed, will change the nature of the regulation of animal feeds and therefore the likely fee structures. The above proposals are based on the current regulatory regime.

⁴ Includes primary processors for animal consumption