Agsafe’s highly successful drumMUSTER program is switching from a levy to a more efficient fee-for-service income model, delivering benefits to the agvet sector.
Agsafe general manager Dominique Doyle said when the drumMUSTER program was established in 1998, it was funded by industry.
The voluntary industry stewardship program is now funded by 95% of industry (138 companies). Industry sectors include crop protection, animal medicines and fertiliser input products distributed in plastic and metal containers.
“This industry commitment to stewardship is an outstanding achievement to be celebrated,” Ms Doyle said.
“Over 42 million containers have been recycled, and since 2003, drumMUSTER’s sister program ChemClear has removed more than 950,000 litres of obsolete chemicals off farms and out of rural communities.
“DrumMUSTER is embedded in industry quality assurance programs such as Freshcare. Primary producers and rural communities clearly understand the benefits of these stewardship programs.”
Originally, funding of drumMUSTER was enabled via an ACCC Authorisation in the form of a levy on eligible products entering the supply chain. The ACCC Authorisation was in place to protect participating companies from anti-competitive conduct (charging the levy on top of the RRP).
Ms Doyle said the drumMUSTER fee will now be included as a cost of bringing the product to market as part of the recommended retail price. There may be some additional tax benefits availed to participant companies.
She said over the intervening 25 years there have been some significant changes in industry compliance from government, as well as global UN Sustainable Development Goals.
“Today, industry is required to take responsibility for the waste that their products create through the whole product life cycle.
“Companies participating in drumMUSTER were notified on 12 September 2023 that AgStewardship will no longer be collecting the levy. Agsafe will now engage directly with industry to transition to a fee-for-service model. Agsafe will collect a fee from industry (to operate the scheme) and continue to recycle all eligible containers both pre- and post- arrangements.
“These changes will allow for a marked reduction in duplication of governance costs and allow Agsafe to maintain prudent management of operations to keep costs low, while still delivering quality services.”
Companies participating will still be able to continue to demonstrate to their customers that the drumMUSTER fees have been paid, and that there is a recycling pathway available for these containers post-use.
Agsafe is backdating the arrangements with participant companies (via the new agreement) to ensure funds continue to be collected for all eligible containers (as a fee). The September 2023 quarter declarations process will be managed directly by Agsafe.
Ms Doyle said all other operational arrangements remain unchanged. The use of the drumMUSTER logo is still required and collection activities will continue. From a farmer’s perspective, there will be very little perceptible change, she said.
“Agsafe is very proud of the positive impact that drumMUSTER and ChemClear have had with rural communities across Australia.
“However, it is the genuine support on the ground from retailers which makes the program the success it is today.”
As key influencers of farmers and chemical users in rural Australia, she said retailers’ support and promotion of drumMUSTER and ChemClear programs will continue to strengthen farmer engagement and increase collections across Australia.
