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August 20, 2007
The Wheat Export Marketing
Alliance (WEMA) will create a new wheat export single desk
business model rather than pursue the AWB Limited, new
subsidiary, demerger.
WEMA Chairman Graham Blight said “after careful evaluation of
the AWB Limited offer, consideration of the risks and
limitations, including getting 75% A and B Class shareholder
approval for any de-merger, we believe it will be in producers’
best interests if we develop a new model and company to take the
wheat industry forward”.
“Development of the model has commenced, as we are very
conscious of the time limitations imposed upon us by Government,
and negotiations for contestable services with industry will
take place as soon as practicable,” Mr Blight said.
“We intend to commence negotiations with AWB and other potential
providers for contestable services and believe that the industry
will want to support growers and continue the opportunity of
growing their businesses and grower returns.”
“The new single desk model will have bulk export control. It
will operate directly in the wheat export market, but will also
work with other entities who can demonstrate a capacity to
generate superior returns to growers through efficient
procedures and effective management of costs. Industry
participants with proven capacity to build markets and develop
relationships with clients will be encouraged to participate.”
“Following recent discussions in Canberra, I am encouraged that
Government and the Labor Party support the single desk, although
there are some minor variants.
Government have indicated they are comfortable with WEMA’s core
business model. Labor want to put it through a vigorous review
to ensure it delivers real benefits to growers, and WEMA is
confident it will,” Mr Blight said.
“Our aim is to deliver the best return possible and secure value
added markets for the benefit of growers. The next step is to
further develop the business model for presentation to
government, industry players, financiers and growers.”
“This will be an ‘inclusive’, not ‘exclusive’ single desk model.
I want to stress again that services will be contestable to
ensure costs are minimised and revenues maximised for the
benefit of Australia’s bulk export wheat producers as we build
more efficient services to support national pool marketing.”
The Wheat Export Marketing
Alliance (WEMA) comprises The Western Australian Farmers
Federation, The South Australian Farmers Federation, AgForce
Queensland, the New South
Wales Farmers Federation, The Victorian Farmers Federation
and The Wheat Growwers Association, Inc. |
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