A compulsory 38c cattle tag levy is set to be introduced in autumn of this year, the Minister for Agriculture, Food and the Marine, Michael Creed, has confirmed.
Yesterday, August 2, Minister Creed announced that an agreement on funding for the Irish Cattle Breeding Federation has been reached with approved cattle tag supply companies.
Following detailed discussions, an agreement has been reached on how to continue the successful operation of the ICBF, according to the department.
Approved tag suppliers will be required to make a contribution of 38c, VAT inclusive, to the ICBF on all new tag sets sold, it added.
The ICBF has made a valuable contribution to the dairy and beef sectors, Minister Creed said.
Genetic gain has delivered over €500 million of extra profit to the industry overall.
“Improved breeding through the Economic Breeding Index has produced better milk solids and more fertile dairy herds.
“The Eurostars index has delivered improved carcass weights and conformation to beef herds. Farmers have been the main beneficiaries of the work being done by ICBF over the last 20 years and it is essential that this continues into the future,” Minister Creed added.
Since its inception, the ICBF has relied on a three-way partnership approach to its funding – through financial support from the department, through service provision and through a direct financial contribution from farmers when ordering their identity tags.
The new funding mechanism means that all approved tag suppliers will pay 38c per set of tags (including VAT) from the new tag ordering season starting in autumn of this year, the department confirmed.
The department has at the same time committed to its continued financial support of the ICBF.
Minister Creed said: “It is essential that farmers in the future can steer the development of our national breeding programme and that the farmer-owned and controlled structure of the ICBF continues.
“The continued funding will allow farmers have a strong voice in cattle breeding. I am grateful to the support of the various stakeholders in contributing to the successful conclusion of the talks my department has had over the last few months.”