DFNB’s board of directors set its 2021-22 operational budget at its June board meeting. As a result, the producer administration levy will drop from $0.0635 to $0.057 per kgs of total solids effective August 1, 2021.
The main factors contributing to the reduction are because total solids produced are forecast to increase by 5% compared to the 2020-21 budget and operating expenses are forecast to reduce by about 5% as well.
Operating expenses are expected to remain lower than prior years as a number of provincial and national meetings will continue to be held virtually until restrictions are fully lifted.
Lab fees charged to producers are set to increase from $0.0067 per kg of total solids to $0.0100 per kg of total solids effective August 1, 2021 in order to offset the costs of IBC/Bactoscan tests. The remaining levies including Research and Promotion are anticipated to remain the same.
The transportation levy is also expected to remain similar to last year but is influenced by time and fuel. Reduced promotion activities has resulted in the accumulation of funds which are being set aside in a promotion reserve and will be reviewed by the board over the coming months.
The Board has also implemented a policy that will cause it to consider whether its retained earnings are in excess of its needs. The retained earnings target that the board has set is 50% of budgeted operational expenses. Upon completion of the audited financials the board will determine what amount, if any, should be returned to producers with the objective of reducing retained earnings to that stated target.