Concern over higher PPECB citrus levy

<br /> The PPECB (Perishable Products Export Control Board) recently announced a 13,4% inspection levy increase for citrus fruit. In the case of inland inspections of cartons larger than 5kg the levy will increase from 27,5c to 31,2c. <br /> <br /> Maxwell Hawes, chairperson of the PPECB, said he believed the high increase is justifiable as the average increase over the four-year period from 2003 would still only be 3,54% per annum for citrus. Piet Smit, a citrus farmer from Citrusdal and CEO of the Citrus Producers&rsquo; Forum, however felt that the citrus industry would not be able to absorb such a high increase. He thought the PPECB may have made a mistake in their calculations of the average increase over the four-year period. Smit pointed out that the PPECB has always been accessible and open to negotiation. The Citrus Growers&rsquo; Association is currently in meetings with PPECB to try and negotiate better levies. The increase follows the introduction of a new model to calculate the levies necessary to cover inspection costs. The PPECB&rsquo;s previous levies were calculated through a break-even levy model whereby this levy was determined by simply dividing the cost by volume. This model was restrictive because levies fluctuated as volumes varied from year to year. <br /> <br /> The new model takes into account volumes of the past three years as well as projected volumes for the coming season. It will then calculate a maximum and minimum levy based on the risk in the volatility for the specific industry. H awes believes the model will help to eliminate erratic levy changes year on year, pre-emptively addressing the risk of industries with declining volumes and benefiting industries experiencing volume growth. eciduous fruit will receive no inspection levy increases for now, but all other levies of the PPECB will increase by 6,1% subject to rounding. &ndash; Glenneis Erasmus