An unexpected move by the federal government to recover regulatory costs of agricultural exports has shocked the nation’s farm sector and exporters.

The cost is expected to be in the realm of “millions and millions” for agricultural exporters, sources told The Weekly Times.

The government announced late last week the new cost recovery arrangement for exports would be introduced from July 1 next year.

Farmer and exporter representatives were scrambling to understand what the changes would mean this week, after being given just three hours’ notice ahead of a meeting with government representatives that announced “what amounts to a significant cost shift on to industry”.

National Farmers’ Federation president Hamish McIntyre said the NFF was concerned the proposed changes “may hurt the competitiveness of agricultural exports and producers”.

An Australian Meat Industry Council spokeswoman said: “Industry ‘consultation’ has been consultation in name only, following an opaque and inadequate review of cost recovery arrangements by DAFF.”

AMIC was “extremely disappointed by the absence of meaningful consultation or any serious effort to reduce the regulatory cost burden on industry”.

Grain Producers Australia southern director Andrew Weidemann said “any cost burden to grain producers is a very real concern”.

AusVeg chief executive Michael Coote said the consultation was not genuine, but was “instead the government telling vegetable grower exporters it is a forgone conclusion that they will be hit with higher export fees and charges, with no commitment that the level of service – which can only be provided by government – will improve”.

Nationals leader David Littleproud said it was “very concerning that the Albanese Labor government has allowed the department’s costs to provide export services to blow out while implementing limited efficiencies and now expecting the agriculture industry to pay”.

A statement from Agriculture Minister Julie Collins said the cost of providing regulatory exports functions outstripped revenue raised for the 16 of the past 20 years, with export arrangements having received $138m in supplementation measures from the government since 2023-24.

The minister’s statement said the cost recovery arrangement was needed to ensure vital export regulatory services were sustainably funded and continued to meet industry needs.

There would be a phased return to cost recovery over the next three years for most arrangements.

Industry could expect to be asked to provide feedback early next year.