AWB’s submission to the Wheat Export Marketing Consultation Committee
AWB’s submission to the Wheat Export Marketing Consultation Committee (WEMCC) was lodged on Friday 23 February 2007 and is now available online.
The key themes from AWB’s submission are outlined below:
- the current Single Desk wheat marketing arrangements are a legislated mandate and AWB has fulfilled its ultimate objective – to maximise net returns to wheat growers. AWB surveys, and the feedback from WEMCC meetings, show that a majority of wheat growers continue to support those arrangements or a version of those arrangements
- further changes to Single Desk arrangements are warranted but should be gradual and linked to the global trade reform timetable and structural adjustment within the domestic grains industry, to ensure wheat growers are globally competitive and financially viable
- AWB recommends a de-merger of AWB Limited and AWB International as a sensible evolution of the current arrangements
- deregulation of the current Single Desk arrangements will not produce an efficient and effective contestable market for the sale of Australian wheat unless reform is extended to include state-based bulk handling monopolies and the needs of international customers
- the key findings of the January 2007 IPSOS survey show:
- over 80 percent of wheat growers, both small and large, support retention of the Single Desk wheat export marketing arrangements
- two out of three wheat growers feel positive about AWB management of those arrangements
- wheat grower satisfaction with the services provided by AWB grain marketers has actually increased from 64 percent to 72 percent.
- the core Single Desk principles identified by growers in the IPSOS survey are:
- most general wheat growers value payment security (95 percent) and a National Pool (90 percent) as core principles of the current wheat export marketing arrangements
- the next most important principles for general wheat growers are a grower controlled national wheat marketing body (88 percent) and industry good services (88 percent)
- other core principles for general wheat growers include the bulk veto (79 percent) and a buyer of last resort facility (74 percent).
For the full submission and to review the survey results, please read:
AWB's WEMCC submission (PDF, 2.8 Mb)