A leading crop industry body says independent economic analysis confirms proposed increases in charges and taxes by Australia’s agricultural chemicals regulator will harm agricultural productivity and lead to higher food prices.
The public consultation period for the Armidale-based Australian Agrochemicals and Veterinary Medicines Authority’s (APVMA) proposed Cost Recovery Scheme Implementation Statement (CRIS) has concluded. CropLife Australia has submitted a statement outlining the key issues with the proposal and making recommendations for a more robust funding model. The statement is based on independent analysis by the economic, policy, and advisory firm ACIL Allen.
”The new APVMA cost recovery model poses risks to the productivity and international competitiveness of the Australian agricultural industry,” said Matthew Causey, CEO of CropLife Australia.
”This will limit the ability of our farmers to grow fresh produce, thereby reducing the cost of living pressure caused by food inflation, and will also result in excessive fees, charges and taxes being levied by the industry.”
”Having a well-resourced and effectively functioning regulatory body capable of conducting assessments within a reasonable timeframe is entirely in the interests of the industry, and we support the Australian Pesticides and Veterinary Medicines Authority (APVMA)’s ability to do so. Our concern is not whether the industry should bear its share of responsibility, but that this model fails to provide balance.”
”ACIL Allen’s analysis confirms what the industry has been saying since July: the proposed fee structure is disproportionate, unsupported by evidence and impractical.”
ACIL Allen’s report finds that requiring full upfront registration fees will deprive farmers of access to new products, which, due to the limited size of the Australian market, will only generate marginal profits before prices rise. The report also notes what Mr. Cossey calls a “no-man’s land”: registering a product or for a specific purpose becomes unprofitable due to increased application fees, while permits for the same purpose are unavailable.
Mr Cossey said: “Worse still, this impact will disproportionately affect yields of small and speciality crops, particularly in horticulture, where improving yields is critical not only for Australian agriculture but also to reducing inflation.”
”Last week’s ANZ Bank Food Thinking report identified the pressure Australian households are experiencing at the checkout counter due to the rising cost of living, which they have been feeling for years: vegetable prices have risen by almost 65% since September 2017.”
”This shows that it is not just farmers but Australian families, from cities to rural areas, who are unable to resist these changes.”
The analysis also shows that patents are typically valid for 20 years, but by the time a product is registered in Australia, nearly half of the patent’s term has passed. Due to the higher initial costs required to achieve breakeven in such a short period, CropLife warns that some products or their applications may simply be impractical, making their implementation in Australia completely uneconomical.
Mr Cossey said: “We look forward to working with Minister Chisholm, the Department of Agriculture, Forestry and Fisheries and the Australian Pesticides and Veterinary Medicines Authority to ensure appropriate communication with the industry and farmers before making any final decisions.”
“We still have time to complete this, and CropLife will continue to provide practical assistance in creating a funding model that can support the APVMA, Australian farmers and the competitiveness of the industry.”
Do you have any news or events in New England that you should know about? Please email us at newsdesk@netimes.com.au to let us know.
R. Crosby is a television host, journalist, sociologist, and publisher of The New England Times. More articles by R. Crosby.
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Post time: Sep-08-2026
