Queensland Grain producer Rowell Walton in his “View from the header” writes:
The period from the early nineties till now has seen dramatic changes in grain marketing, from fully regulated domestically and internationally to the now entirely deregulated domestic market.
(My view from “the front of the header” during the 2007 Wheat harvest at Yulabilla Condamine QLD)
With the current push by certain groups to do away with he single desk of the Australian Wheat Board and complete the return to pre 1930,s marketing conditions grain producers need to consider carefully their future prospects.
While the world oil shortage and political need has seen the US move rapidly toward domestic production of fuel via ethanol from grain and following decades of low grain prices production has languished.
Now, a strong lift in prices has sent a signal to growers and observers that once again grain is king.
In the shadow of this profitable grain situation it is possible for political operatives to pursue with enthusiasm their agendas for change (code for deregulation) and utilize apathy as growers busy themselves to at last make profits.
(Delivering Wheat to the silo’s during last years harvest)
At any time grain production matches consumption and reserves are available grain price growth will be constrained, in this environment the vast majority of grain producers understand the need for a exporting system which gives them a semblance of ability to extract from the market a fair price. This has been the norm for the life of this producer.
(Header in action during last years Wheat harvest)
Just how the advocates of dismantling the single desk think Australian growers can benefit from the interchange of commerce when several sales people approach the same buyer in some far of place is beyond me, domestically however if a grower is weak and sells below a reasonable price then at least some local benefit may be appropriated, some feedlot or chicken producer who employs Australians, but to give away market power for nothing in return, is senseless.
Take the recent AWB board who have tried to make change and used name calling and innuendo to advance their call. Even the chairman a Queensland’er, asserts he has a mandate (more like a decree) while he fails to observe the rules that govern him, the constitution of the AWB requires that 75% majority be achieved for such changes.
Those are the rules the board must follow. It is this typical refusal to abide by rules, which has taken us to this sad place where even some growers think as a result of certain events we should dump the AWB.
(The men waiting for moisture levels to drop so we can get started again during the 2007 wheat harvest at Yulabilla Condamine QLD.)
Here’s a thought, those who refuse to abide by the rules should no longer hold the confidence of the shareholders and thus should resign forthwith and the shareholders should re elect a board that is prepared to follow the constitution and its rules.
No, I will not label them traitors; I will leave it for history to do that.
And who will benefit from the change advocated.growers? I think not.
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