Remaining 'M. bovis' cost falls on farmers

Beef and dairy farmers will cover 32% of the costs of eradicating Mycoplasma bovis (M. bovis), the boards of DairyNZ and Beef + Lamb New Zealand have announced.

In May, the Government announced it would foot 68% of the direct response costs - believed to be up to $870million - and the remaining 32% would be split between the dairy industries and beef industries.

The dairy industry will be covering the majority (94%) of that 32% portion, while the beef industry makes up the rest. 

The split was announced after a ''challenging but constructive'' process, both organisations announced in a statement yesterday.

DairyNZ chairman Jim van der Poel said the organisation was ''very grateful for the public support and the support of the Government to assist with this eradication effort''. '

Taking into account not only direct costs but the money the industry committed to support the initial investigation phase of the response, the dairy sector will pay $272 million.

''How we fund that cost is subject to a separate biosecurity levy consultation with our farmers, which farmers will receive information about in early 2019,'' Mr van der Poel said.

Beef + Lamb chairman Andrew Morrison said the organisation's farmers would be paying $17.4 million over the 10 years.

The Ministry for Primary Industries' latest situation report on the eradication response has the total number of infected properties at 75, with 33 of these being ''active''.


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