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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 10: Secondary Processors

Introduction

This section details the recovery costs of industry goods for secondary processors of all animal products (excluding dairy).

Costs to be recovered from sector

The costs of services provided to the sector are:

Service	Cost	Payable from
New Zealand Standards and Systems	$347,726	All domestic and export processors
Market Access	$29,449	Export processors
Export Standards	$2,561	Export processors

Current situation

Currently game pack-houses pay an annual fee of $394 p.a. and other pack-houses pay $619 p.a. (reflecting the differing costs of supply). Now that pack-houses are permitted to operate in more than one sector, rates need to be adjusted to reflect the diversity of some operators

Cost Recovery option

1. Fixed annual charge

All processors (412) $844 p.a.

Export processors (412) $78 p.a.

TOTAL $922 p.a.

3. Differential charge/levies

A levy based system may provide a more equitable distribution of costs. Consideration could be given to differential charges based on size of business (small, medium, large). Currently NZFSA does not have enough accurate information available to base such a charge or levy on.

4. Recovery from primary processors

This option involves apportioning secondary processing costs across primary processors in proportion to the size of each respective industry (meat, game, fish, shell fish and poultry).