News

The Australian Macadamia Society (AMS) has been actively involved in the sector-wide response for the eradication and management of varroa mite since it was first detected in the Port of Newcastle in June 2022.  This response has now been finalised, and the National Management Group has agreed to a transition to management plan. 

As a signatory to the Emergency Plant Pest Response Deed (EPPRD), the macadamia industry has cost-sharing obligations to repay the industry’s percentage of the total cost of $100 million for the varroa mite response. 

Following strong industry engagement, varroa mite was reclassified from a Category 3 to a Category 2 pest, in mid-2023; as a result the government will pay 80% of the cost of managing the incursion and affected industries will pay 20%. If varroa mite had remained a Category 3 pest, the funding ratio would have been 50:50, with a substantially higher cost to industry.

The Category 2 classification means the macadamia industry’s share of the total cost is now $1.27 million which includes both the cost of the transition to management plan and the cost of the previous eradication attempt.

On behalf of the macadamia industry, the AMS asked the Australian Government to underwrite the industry’s cost-sharing obligation for the response to varroa mite, using the EPPR levy as the mechanism for repayment within the recommended 10-year period. 

The macadamia industry is currently not paying the EPPR levy as, historically, it has been activated on a needs basis to cover the cost of pest incursions. The last activation was for the Varroa jacobsoni response in 2017-2021.

With forecast crop increases as planted macadamia orchards come into production (from 2025 to 2029), it is proposed to reactivate the EPPR levy at 0.79 of a cent per kilogram of dried kernel in January 2025.   If crop volumes align with forecasts, it will enable the industry to repay its obligation in seven years, while providing a three-year buffer for full repayment of the government loan should crop volumes not meet current forecasts.

In July 2024, the AMS wrote to the Minister for Agriculture, Fisheries and Forestry, Senator the Hon. Murray Watt, to request the reactivation of the EPPR levy to meet the macadamia industry’s cost-sharing obligation for the varroa mite response.

A 30-day objection period was held from 12 July – 11 August 2024, allowing for submission of questions and/or objections about the levy details or process during that period.

Following the conclusion of the objection period, and review of questions and objections received, the Agriculture Minister made a determination that the reactivation of the EPPR levy as proposed was the most practical option for the repayment of the macadamia industry cost-share obligation within the required 10-year period. 

The reactivation of the EPPR levy at 0.79 of a cent per kilogram of dried kernel will be effective from 1st January 2025.