Agmates

NSW - Peak Hill Wheat Grower (Location) and Chairman of the Wheat Growers Action Group (WAG) Peter Cannon writes:

Federal Minister for Agriculture Tony Burke (pictured) today declared that he is more than comfortable with the delivery of the marketing of Australia’s wheat crop to multi-nationals and regional monopolies.

I and members of Wheat Growers’ Action Group met with Mr Burke for 45 minutes yesterday in Canberra and were aghast as he lectured us on the benefits of the Rudd Government’s system.

As a result of that meeting and the second reading of the Bill in Parliament yesterday we are demanding the federal government compensate wheat growers for loss of income and transfer of risk if its Wheat Export Marketing legislation is passed by parliament.

The legislation which was introduced to parliament last Thursday threatens the livelihood of thousands of growers and rural communities and removes the only advantage that Australian farmers have over heavily subsidized international competitors.

The legislation will abolish the National Pool, which has been an effective and orderly marketing system for the past 60 years. It also meant farmers were guaranteed a buyer of their wheat which will no longer be the case under the government’s changes.

The new laws favour big business and multi-nationals by granting them licences to export Australian wheat. Growers are worried the export companies will drive down prices as they compete to secure overseas markets.

There’s also grave concerns about regional monopolies controlling the movement of wheat, and bulk handling companies restricting grower access to up-country storage and port facilities.

There’s a likelihood that the bulk handlers may not apply for export permits but will accumulate wheat and act as a front for the multi-nationals. This will allow a situation where the mega-traders will avoid scrutiny by taking control of the wheat as it leaves the port.

Photo: Grain Silos and Loading Terminal at Port Lincoln South Australia:

The American multi-national, Cargill, would under Rudd’s system, through its link with the cash-strapped Graincorp, control the crop from paddock to customer. The champagne corks will be popping in Cargill’s head office.

The federal government has been hypocritical in its response the USA last week passing its Farm Bill to continue to pay $US307 billion in subsidies to its farm sector, which is in direct conflict to the objectives in the Doha Round of multilateral trade negotiations.

Mr Burke has said the Rudd Government worked hard to seek a level playing field for Australian producers, yet it is moving to punish growers for the perceived misdemeanours in Iraq of the Australian Wheat Board (AWB).

We ask, how this level playing field work with the proposed new wheat export marketing legislation ending the only advantage Australian wheat growers have had over subsidized growers in other countries - that is our single desk marketing system that has served Australia for well over 60 years?

The Trade Minister, Simon Crean, (pictured) has expressed his dismay at the increase in farm support in the US Farm Bill. How does he think the Australian wheat growers feel at our own government proposing to remove our only step on to this “level playing field,” and thus adding further to the delight of the US wheat growers!

The Federal Labor Government will need to provide an industry adjustment package in excess of $10 billion to allow growers any chance to operate and remain viable under the new legislation.

To add to the insult, growers are likely to be hit with a levy to pay for the $4 million dollars the government has pledged for the annual budget of Wheat Exports Australia - the industry’s new regulator.

There will also be a tax-payer funded education scheme to teach growers how to market their grain under the changes. It’s more unnecessary waste of tax-payer funds when there’s already a proven marketing system in place, a system that more than 80 per cent of growers want to remain.

WAG members (logo pictured) are deeply worried the new wheat export bill has the potential to send growers broke and family farms will disappear along with those communities that rely on them.

So too does the Country Women’s Association (CWA), which at its recent annual conference called on the federal government to retain the present wheat marketing system for the 2008/09 cropping season. They also called for growers to be surveyed on whether they want the current system retained, just as Kevin Rudd had always demanded of John Howard.

The WA Farmers Federation and the Wheat Growers Association (a national body) has also confirmed its support for WGAG.

We are calling on Minister Burke to withdraw the bill immediately and allow the current national pool system to remain in place for the 08/09 harvest, to avoid a debacle which will see the collapse of the Australian grains industry.

Growers will take direct action to ensure that their message gets across if this Government insists on pushing the Bill through and there is no doubt that it will suffer acute embarrassment as it attempts to justify this sell out of Australian interests.

WGAG has launched a petition opposing the Wheat Export Marketing Legislation - go to our website: www.concernedwheatgrowers.com

We are urging wheat growers to get involved. To find out what you can do to help please contact me Peter Cannon on mobile 0428 697 634 or my phone fax is 02 6869 7634.

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Agmates Says:

Rudd has Conned Us.

Kevin Rudd promised Australian wheat farmers that if Labor came to power and growers wanted the Single Desk, Labor would retain it.

It now appears Prime Minister Kevin Rudd was prepared to promise farmers anything without any intention of fulfilling those commitments just to get elected. All of those in Rural and regional Australia who voted Labor for the first time have been conned.

See evidence of Kevin Rudd’s Broken Promises in the links below. Click on them to read.

Kevin Rudd then Opposition Leader Letter to NSW Wheat Grower Darryl Kitto

Senator Ron Boswell - Rudd Letter reveals support for Single Desk

Tony Windsor Ind Fed MP - Rudd assured me Single Desk would be Retained

Senator Ron Boswell

“Kevin 07 curried favour with growers by telling them their single desk would stay.

Kevin 08 gets rid of the single desk. How can anybody respect anything he says?”

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Nationals & Liberals Split Over Wheat Marketing
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Have your Say!

Agmates Editor Steve Truman writes:

If Prime Minister Kevin Rudd (pictured left) listens to the overwhelming majority of Australian Wheat farmers and scraps the controversial legislation to deregulate bulk wheat export he will succeed in alienating a generation of Australian farmers from the Liberal party.

Independent federal MP Tony Windsor’s poll of 24,000 wheat growers across Australia showed that whopping 80% want the single desk system retained. The poll showed only 14% of wheat growers supported the Labor Governments proposed controversial legislation to deregulate bulk wheat export marketing. Just 6% wanted to see the legislation go further.

The leadership of the National Party, Warren Truss (pictured left) & Nigel Scullion are to be congratulated for taking a stand on behalf of it’s constituents against the rampant Free Trade policies of its coalition partner the Liberal party.

Labor has said that it wants the new legislation through by June 30th. The coalition parties in opposition still control the Senate until June 30th.

The Nationals have stated they will stand up for Wheat farmers and oppose the Governments bill. The Liberal’s have stated they will defy the wish of the majority of wheat growers and support labor in the passing of the bill.

This is the first time in living memory that the Coalition will split on the floor of Parliament over an issue.

Liberal MP’s who enthusiastically support the labor Governments legislation have waged a “dirty tricks” campaign throughout the inquiry:

Western Australian Liberal Senator Judith Adams (pictured left) a wheat grower from Western Australia told the inquiry:

“I might add that Western Australian Wheat Growers now support the removal of the Single Desk…….. the majority (of WA Wheat farmers) feel they have had enough and want to get rid of it.”

The poll in fact showed 71% in that state backed the single desk, while only 22% among WA farmers wanted to see the System scraped. An independent poll of wheat growers by the Western Australian Farmers Federation had also show that 7o% of it members backed the single desk.

Liberal MP and Federal Member for O’Connor Wilson Tuckey (pictured left) is another Liberal enthusiastically supporting the legislation. Mr Tuckey carries some weight with the inquiry as his electorate covers one of the largest wheat growing districts in Australia.

Mr Tuckey actually supported the position that just 6% of growers polled. In his submission to the Senate inquiry he said not only should the Single Desk be scrapped but individual farmers should be free to export wheat in bulk directly to foreign markets under the new wheat export arrangements.

NSW Liberal Senator Bill Heffernan (pictured left) who sat on the inquiry stooped to the lowest levels. When the inquiry sat in Canberra he was booed and heckled by a group of 50 wheat farmers when he told Nationals Senator Barnaby Joyce that he was talking “Bullshit”.

Later outside the inquiry Senator Joyce told Mr Heffernan to “Stop making a Goose out of himself” as he tried to disrupt a press conference that was happening with the Senator Joyce and the group of farmers.

In NSW, the state that Senator Heffernan represents the single desk was backed by 87% of farmers.

Independent Federal MP Tony Windsor (pictured left) is calling on Prime Minister Kevin Rudd to listen to the majority of Wheat farmers and scrap the proposed legislation.

“The single desk had “a higher approval rating than Kevin Rudd at 70% so it’s very hard to justify its scrapping”, he said.

National Party Senators Barnaby Joyce & Fiona Nash and NSW Nationals State MP have championed the case for retaining the single desk throughtout the inquiry.

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Have your Say!

The Liberal Party hasn’t learnt a thing from it’s thumping at the last Federal election. They are still not listening to working farming families. What do you think?

Leave your comment below or click on the blue word comments.

Agmates Editor Steve Truman writes.

At yesterdays Senate Inquiry into the Wheat Single Desk 50 angry wheat growers and National party MP’s saw the ugly side of the Liberal Party embodied in NSW Liberal Senator Bill Heffernan (pictured left).

The farmers lead by NSW wheat grower Jock Munro traveled to Parliament House in Canberra on Tuesday to call for the government’s draft laws - which would end Single desk marketing of Australia’s bulk wheat exports - to be scrapped.

Tempers flared during the inquiry as the farmers made their feelings plain, cheering, jeering and interjecting until they were warned they risked being thrown out.

In what has been described as “Ugly Coalition Clash” by media outlets: Click here to see full report from Cathy Alexander of the Warranbool Standard.

Nationals senator Barnaby Joyce (pictured below) clashed with Liberal senator Bill Heffernan, who also sits on the inquiry’s committee, inside and outside the hearing.

Senator Heffernan accused Senator Joyce of talking “bullshit” during the inquiry.

Senator Heffernan later tried to attend Tuesday’s lunch-time press conference with the farmers but was asked to leave by Senator Joyce.

“Look serious, Barnaby, look serious,” Senator Heffernan called out as Senator Joyce and the group of farmers walked up to a journalist.

As Senator Heffernan loomed behind Senator Joyce during the press conference, the Queenslander said: “Bill we know what you’re up to mate; this is bullshit, Bill, this is bullshit.”

The Melbourne Age reported:

“You are making a goose of yourself,” Senator Joyce told Senator Heffernan, accusing him of “bullshit”. “I’ll let them go on you, Bill,” Senator Joyce said, referring to the farmers who were protesting about the end of the single desk. Senator Heffernan retreated to the sidelines, to hear the legislation denounced. Read Full the full Age report hear.

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Have your say!

Is the Liberal Party doing the right thing by Farmers backing Labors move to scrap our Wheat Single Desk Marketing?

Leave your comment below or click on the Blue word Comments and the reply box will appear.

Agmates Editor Steve Truman writes;

Source: This article appeared in the New York Times 4 days ago. To read it all click here.

The Deniliquin mill (pictured below), the largest rice mill in the Southern Hemisphere, once processed enough grain to meet the needs of 20 million people around the world. But six long years of drought have taken a toll, reducing Australia’s rice crop by 98 percent.

Ten thousand miles separate the mill’s hushed rows of oversized silos and sheds - from the riotous streets of Port-au-Prince, Haiti, but a widening global crisis unites them.

The collapse of Australia’s rice production is one of several factors contributing to a doubling of rice prices in the last three months - increases that have led the world’s largest exporters to restrict exports severely, spurred panicked hoarding in Hong Kong and the Philippines, and set off violent protests in countries including Cameroon, Egypt, Ethiopia, Haiti, Indonesia, Italy, Ivory Coast, Mauritania, the Philippines, Thailand, Uzbekistan and Yemen.

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This email received by Agmates today puts a human face on it all.

It is produced unedited:

To: Agmates
From: IAN WAKELING

i have been reading about gamba grass.
I have just returned from Indonesia to visit my family as i have been married to indonesian lady for 20 year.
When i was over thier my family had to put up in a hotel for the only reason was that thier whir protests in the street.
About food etc.
Also i feel the wages in indonesia is not high enough to cover the cost a bag of rice is nearly 2 weeks wages in indonesia.
I am wondering what will hungary people do.
as i live in hervey bay we paid 25 kg bag of rice $33,00 Au
i feel that the protestors should stop and think re care fully about what thay are doing on the Australia side .
I am luck to have ennough to purchase as much food as i can eat i wonder do these people that protest on such thing are aware of the situration.
Also not only indonesia but other countries have stopped exporting products so thay can feed thier own people,
thats all i have to say.
you have a nice web site.
we are also currently looking to purchase a cattel station.
keep me posted.
Also as world population increases the demand for food will increase also.
If not enough food what will hungary people do i wonder.
I wonder what these people will do that have rasied objection to this sort of thing if people are hungary enough thay may try to take what thay have.
Regards.
Ian

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Update No1: 25th April @ 11.47am

Half of the world’s population about 3 billion people have rice as a staple of their diet.

There are approx a billion people in the world who have to live on $US1 per day. There’s 1.5-billion who are living on $US1.50 a day.

The doubling of the price of rice has pushed as many as 100-million people into poverty. Those people are not trying to pay off a mortgage, buy fuel for a car they just don’t have enough money to buy food for their families.

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Have Your Say!

Do you believe our Agricultural & Political leaders grasp the responsibility Australian farmers have as good global citizens to play our part in maximizing our natural farming resources to produce food for the world?

Leave your comment below or click on the Blue word Comments and the text bax will appear.

Here’s some news I personally have been waiting for:

Six former top executives of wheat exporter AWB (Australian Wheat Board) have moved closer to court over their alleged roles in the $300 million Iraqi kickback scandal.

Former AWB Managing Director Andrew Lindberg and AWB group General Manager Trading Peter Geary are each charged with 10 breaches of the Corporations Act.

Former AWB Chaiman Trevor Flugge is charged with seven breaches, former general manager of International Sales and Marketing Michael Long (pictured left in Iraq in 2003) with 17, former Chief Financial Officer Paul Ingleby 16 and former General Manager of International Sales and Marketing (Middle East) Charles Stott 12.

Read the whole story By clicking Here

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Update 1 - 20th April @ 11.20am

The above civil action is being brought by the Australian Securities & Investments Commission.

Federal & State Police are also looking at proceeding with Criminal charges against the former executives.

Former Chairman Trevor Flugge (pictured in Iraq in 2003) and the above executives have applied for the court case mentioned above (a civil case) to be suspended until Victoria and Federal police have decided whether to go ahead with the criminal proceeding against the men.

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Update No1: 26th April @ 10pm

USDA has imposed a 2 -year ban on AWB as punishment for kickbacks to Saddam Hussein.

The U.S. Department of Agriculture (USDA) has announced that AWB has been barred from using USDA export promotion programs to export agricultural goods for the next two years.

In December 2006, the USDA suspended the board from using any U.S. government commodity procurements or other program such as loan-guarantees and proposed a ban. The debarment of AWB became effective this week for two years.

USDA spokesperson Keith Williams said:

“We took a careful look at the evidence, afforded AWB due process and came to a decision that it was in the best interest of the U.S government and taxpayers to debar this organization for a period of time, The administrative law judge took an independent look and affirmed that decision.”

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Have Your Say!

Leave your comment below or click on the blue word Comments and the reply box will appear.

Agmates Editor Steve Truman writes:

Will Rudd retain single desk if Growers want it? - Part II

Speaking to Federal Independent MP Tony Windsor, he told us that he has received a considerable number of completed polls back from growers.

Tony off his own bat posted out 24,000 polls to wheat growers around Australia asking them did they want to retain the single desk. However it seems that a number of growers have not received it. To give these growers time to get their poll by post and complete it he has extended the cut off date until 23rd of April.

If you are a registered Wheat grower and have not received your poll paper in the mail please contact Tony’s office immediately ph(02)67613080 or fax (02)67613080. The Polls are registered and can only be delivered to you by Australian Post. Once you have completed your poll you can fax it back to his office.

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Here’s what a couple of politicians have been saying about the Single Desk issue over the past week:

First of all we will deal with another Howard era Liberal Party Politician who will not listen to the people he represents.

Western Australian Liberal MP Wilson Tuckey (pictured left) Member for O’Connor an electorate that runs from Albany in the South to Geraldton in the North and takes in a good many of the states wheat growers.

Now bear in mind that the Western Australian Farmers Federation that represents most of the states wheat growers has already polled it’s wheat grower members and found that 70% want the Wheat Single desk retained.

In his submission to the Senate inquiry last week Wilson Tuckey, says not only should the Single Desk be scrapped but individual farmers should be free to export wheat in bulk directly to foreign markets under the new wheat export arrangements.

The member for O’Connor called for growers to be excluded from needing a license to export wheat direct to individual markets.

Mr Tuckey said if growers were prepared to do the work and take on the risks, then they did not need any protection to sell their own wheat under the new legislation.

Mr Tuckey said the solution therefore was to exclude individuals or corporations who wanted to export wheat produced on their own properties from the export accreditation requirements.

He said because they are not middlemen and if they take such a choice, they had the right to assume their own risk.

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Agmates Comment:

If nothing else you have to love Wilson for the fact that he’ll pursue his died in the wool true Liberal ethos that the free market “knows all” and is “never wrong” - even when it is against the will of a majority the people he represents.

Perhaps Wilson Tuckey should revisit Greg Crook’s online thoughts on professional wheat farmers ability to compete with professional grain traders.

Greg made this comment on the article where we exposed Wilson Tuckeys fellow Western Australian Liberal Senator Judith Adams (what is it with the western australian liberal party?) telling the Inquiry this “porky” - Adams tells Senate Inquiry WA Wheat Farmers want Single Desk GONE!

Part of what Greg Said:

Surely it wouldn’t be that they have a total gut full of increasing risk and debt or perhaps its because they are all bloody good professional farmers and nothing more nothing less.

Farm/ Farmer in the dictionary means “A tract of land used for agriculture or other industry; to cultivate ; to raise livestock,fish etc on a farm “

Nothing about being a bloody hot shot grain trader trying to outsmart the rest of the world and coming a gutser every second time while the grubs ate the back paddock out because he was at the computer all day!

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QLD Nationals Senator Barnaby Joyce wrote to Agmates:

“Now, to another self-interested group talking about the benefits to the nation of deregulating the Single Desk: quite obviously, the only benefits are to those who will be left with a vertically integrated, regional monopoly of one of our nation’s major exports.

I am prepared to go double or nothing that this one will be at the expense of wheat growers in the majority and Australia in general. Unfortunately, I and many others feel we will have less success in stopping this one than we did stopping the private equity takeover of Qantas.

“With the removal of a single desk player from the wheat export market and its replacement by a vertically integrated monopoly, from receival to port to export, the position in the market and the grower is reduced.

“There will be no comparative market power within the wheat market place to bring a greater transparency and honesty to pricing. There is no capacity under part 3(a) for easy access to infrastructure for competition.

The recent battles which have been fought by Telstra to stop access by other carriers to telecommunications infrastructure should be a clear lesson about the inadequacies of the Trade Practices Act. Other participants are highly unlikely to be able to get a substantial foot hold in a market where the infrastructure is dominated by one player.

“All the new Wheat Bill will do is remove the legislation currently protecting growers from vertical integration by insisting that another player has access to a section of a market. It will also vastly reduce the bargaining capacity of most wheat growers.

“The philosophy of removing the bargaining power of the weak in favour of the strong, I thought, would be an anathema to the philosophy of the Labor Party; at least it was when they were talking about AWA’s at the last election.”

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Have Your Say!

Do you believe Individual Wheat Farmers should be able to market their own Wheat crop directly to foreign markets?

Leave your comment below or click on the blue word Comments to bring up the text entry box.

Agmates Editor Steve Truman writes:

The Australian Bureau of Agricultural and Resource Economics is forecasting a record-breaking 25,950million tonne wheat crop, provided there is an average season, with a gross value of $8.6 billion.

Wheat prices are at record high’s (see table below) and, if the season goes well, there will be a record crop.

Rising demand for food, less arable land across the world, competition for crops to use as food and fuel, and climate change are remaking our farm sector’s future. Click Here to read the article in the Australian

The boom is on. Last week AWB offered $400 to $420 a tonne for its benchmark Australian premium white wheat in the coming season.

The Westpac-National commodity index has surged 26 per cent in the past year. According to the index, in Australian dollars the price for wheat has risen 85 per cent in 12 months, canola 72 per cent, dairy 29 per cent. Interestingly export beef has only rising 3 per cent in the same time.

The relatively high Australian dollar to some extent is masking the strength of the rise, which in US dollars is 47 per cent above the past year.

Below is wheat growers returns since over the last 17 years. Source ABARE. The first column is the Average price per tonne across all grades of wheat. The second from 1996 on is the total value of wheat production.

• 1990-91 $132
• 1991-92 $200
• 1992-93 $166
• 1993-94 $174
• 1994-95 $237
• 1995-96 $261
• 1996-97 $213…………………..$4.8bn
• 1997-98 $198…………………..$3.7bn
• 1998-99 $187…………………..$3.9bn
• 1999-00 $195…………………..$4.5bn
• 2000-01 $232…………………..$5.1bn
• 2001-02 $262…………………..$6.3bn
• 2002-03 $266…………………..$2.7bn
• 2003-04 $216…………………..$5.6bn
• 2004-05 $197…………………..$4.1bn
• 2005-06 $206…………………..$4.3bn
• 2006-07 $233…………………..$2.5bn
• 2007-08 $377……………………$4.9bn
• 2008-09 $333……………………$8.6bn Estimated with average season

The strength of wheat prices is expected to continue for a few years. However it may not be long lived as incredibly the US is pulling 6 million acres of country out of conservation reserve to grow crops on. Click here to read that story.

Have Your say!

Leave your comment below or click on the Blue word Comments to bring up the reply box.

Agmates Editor Steve Truman writes:

In an exclusive interview with Agmates today Independent Federal Member for New England Tony Windsor (pictured) told Agmates:

“Prime Minister Kevin Rudd told me in a meeting in QLD prior to the Federal Election that Labor would retain the Wheat Single Desk marketing arrangement if a majority Australian Wheat Growers wanted it”

Tony intends taking Prime minister Rudd at his word. He has put together “The Wheat Marketing Export Poll” which has been mailed out to 24,000 registered wheat growers across Australia. ( Click here to see Tony’s message and scroll down to see the actual poll)

” Each poll sheet is Tag Coded to make the results verifiable. You can’t photo copy it, or download it from the net. Mr Windsor said”.

The poll form can be returned by fax or post but must be in Mr Windor’s office by the 16th of April.

Tony Windsor said “The poll was mailed out early this week and we already have over 400 polls back. There’s 24,000 gone out and we’ll need to get a large number back for the poll result to be authentic.”

“If the poll shows a clear majority of growers want to retain the single desk, I’ll be taking them to the Senate Inquiry and personally delivering them to Prime Minister Rudd (pictured) and Agriculture Minister Burke.”

I asked Tony why he was doing the poll:

“Not every wheat grower can get to the Senate Inquiry and have their say. The poll gives every single Australian Wheat grower the opportunity to tell the government emphatically what they want. It has become obvious that a lot of misinformation given to the government about what growers want to see happen. So it’s now up to them, they need to complete the poll and get it back to us.”

National’s Senator Barnaby Joyce gave his full support to Tony’s poll when I spoke to him today.

Have your say!

“Have you received your poll in the post? Do you have something you want to say about it?

Leave your comment below or Click on the Blue word comment to bring up the comments box.

Senator Barnaby Joyce attended the Wheat Single Desk hearing in Perth on Monday, here’s what he had to say:

“Following Senate Committee hearings in Western Australia this week, it is clear that those pushing for deregulation are not growers but it could be well suggested the push comes from those with a vested interest in their own commercial position.

“In the state whose Senators (WA Liberal Senator Judith Admas) have stated virtually all wheat growers want deregulation, surprise, surprise the Western Australian Farmers Federation, a body that represents the greatest number of wheat farmers, stated that overwhelmingly their growers (about 70%) do not want deregulation.

“If growers do not want deregulation in the East and they do not want it in the West, where does this overwhelming support for deregulation come from? It appears the support for deregulation comes not from growers but from the companies looking to become exporters and entrench themselves as regional based and vertically integrated monopolies.

“The bulk handling companies that currently dominate port infrastructure and up-country storage and handling will now have the opportunity to become exporters and extend their dominance throughout the entire grains industry supply chain, squeezing out competitors and ultimately disadvantaging growers.

“By only looking at port infrastructure, competition can be stifled and growers will have to accept one price from one player in their region and the lack of transparency means that nobody, other than the bulk handler, knows what is in the system and where it is.

“Anchor deliverers, like anchor tenants in shopping malls, get a good price and the premium they receive is more than made up with a discount to other growers. Currently, this legislation leaves the Australian wheat grower with the potential for a closed shop monopoly protected by the accreditation provisions and no transparency in a legislated form to ensure everyone in the Australian grains industry is treated equally and fairly.

“In the same legislative stroke we have made the same mistake as we did in the fuel industry when we repealed the Sites and Franchise Acts, allowing total vertical integration. Now, instead of instead of total control of a market via vertical integration on import, we will create total vertical integration from receival to export and corporations, if they are legally allowed to exploit you for greater profits to the shareholder, not only will, they must.

“CBH in WA has 95% of the receival infrastructure. If housewives are held over a barrel by two supermarket retailers who can manipulate the market because of centralisation where two players hold approximately 80%, imagine how farmers will go in a market where one player has 95% of the receival infrastructure. Likewise, Graincorp and their major shareholder will have a tremendously powerful position in the east and the receival to export corridor will not be broken up by the inclusion of another player.

“Even the Wheat Export Authority, in 2007, found that with all its market power, the AWB monopoly was unable to reduce storage and handling charges.

“As insult to future injury, we lose also one of our greatest marketing advantages as so ably pointed by Alan Tracy of the U.S. Wheat Associates who is overjoyed by the success of the deregulation campaign in Australia.

Now Australian wheat can compete against Australian wheat in the majority of our export markets that have single desk buyers.

“If this legislation is not blocked or significantly changed, the future is the inevitable regional monopolisation and the discriminations to the growers and a financial boon to certain select players as they are delivered a monopoly position by the Federal Government.”

Have Your Say! Do you support government legislation to abolition the Wheat Single Desk Marketing system? Leave your reply in the text box below or Click on the Blue word Comments to leave your reply.

Agmates Editor Steve Truman writes;

Was Senator Barnaby Joyce at the same Senate inquiry in Perth on Monday as the West Australian reporter who filed this report? Growers back abolishment of single wheat desk the headline screams. (Click on coloured text to go to that story).

The lead paragraph says - “West Australian wheatgrowers have thrown their support behind the abolition of the single desk wheat marketing system, in stark contrast to eastern states growers.”

If you read Senator Joyce’s article and then read the West Australian article you’d have to think they were at 2 different hearings or if not one of them had succumbed to a mind altering substance.

Is it my imagination or is the West Australian article slightly biased toward the major proponents / beneficiary’s of abolishing of the single desk? Why would the West Australian be trying to convince the populous that WA wheat growers want the Single Desk gone?

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Here’s what some of the Agmate’s had to say about abolishing the single wheat desk last week:

You can see the full text of all the online comments below and more by Clicking Here and scrolling down the page.

Greg Crook WA.

“Farm/ Farmer in the dictionary means “A tract of land used for agriculture or other industry; to cultivate ; to raise livestock,fish etc on a farm “

Nothing about being a bloody hot shot grain trader trying to outsmart the rest of the world and coming a gutser every second time while the grubs ate the back paddock out because he was at the computer all day!”

Jock Munro NSW

“This is a treacherous piece of legislation that hands over the marketing of the Australian wheat crop to foreign multi national interests.

Our single desk marketing system is a credit to our Nation and the three generations of wheat growers who have developed it over 60 years.”

Rowell Walton QLD

” as every farmer knows, every meeting I have ever attended has had hundreds vote to retain our model of marketing, just one percent or less against and here we are with the Labor party about to give us the kinfe, farmers assume the Labor party will, but it was the Labor party which gave us this model, It has been the awful Liberal party which has so underhandedly bought us to this place with their philosophical extremism. “

Jock Munro NSW

“Tony Burke will one day realize that he has been ‘duped’ by trader middlemen and the Liberal Party. Lets hope for wheat growers sake it is in the very near future and he withdraws his treacherous Bill.”

Ben Reece

“The real question free marketers must explain is why major production contraction in 2006/07 compared to 2001/02 could only deliver $4.10 increase in domestic valuation of the unit price for wheat. A deregulated domestic market should have delivered a much higher premium.

It can be inferred from this data that the deregulated domestic market carries all the characteristics necessary for classifications as either market failure or excess capacity in the marketing sector. This needs to be identified and explained by supporters of the deregulation.”

Gary Butcher WA.

“The problem with Senator Judith Adams is that if she has ever been to any of the meetings in WA discussing the retention of single desk then she must have been asleep.

The meetings I attended had an overwhelming majority in favor of retaining single desk (300 for / 6 against Minginew 2007). The Western Australian growers I talk to are not against single desk but are sick of politicians not listening to to what the overwhelming majority has to say.”

Have your say! What are your thoughts? Do you agree with the federal government abolishing the single desk wheat marketing system? Click on the blue word comment below to have your say.