Australia
May 8, 2007
A de-merger of
AWB International from
AWB Ltd is the best way to
maintain a true Single Desk for marketing Australian wheat,
according to representatives of the majority of Australia’s
wheat growers.
The Victorian Farmers Federation
(VFF), AgForce Queensland,
NSW Farmers’ Association
and Western Australian Farmers
Federation (Inc.) (WAFarmers) all agreed that AWB needs to
be separated at a meeting held in Melbourne last Friday 4 May.
These four state farming groups believe this is an important
first step to create a dedicated grower-focused organisation
working exclusively for Australia’s wheat producers.
The state farming groups met with the Federal Government on 27
April and indicated that a proposed tendering model was flawed
and could not be supported.
VFF Grains Group President Geoff Nalder said agreement between
the four states that a de-merger was the best course of action
for growers was a clear signal to government on how we can move
forward.
“The states recently met with the Prime Minister and he proposed
an option that could not be supported by any of the states. We
have responded with an option which we think best supports
Australian grain growers,” Mr Nalder said.
NSW Farmers’ Association Grains Committee Chair John Ridley said
“NSW grain growers want certainty for the future and a grower
owned single desk operator ensures that security”.
WAFarmers Grains Council President Derek Clauson said
“Australian farmers have been calling for a 100% grower owned
and controlled marketer throughout this process, and now we have
given government a roadmap to achieve that goal”.
Agforce Grains President Lyndon Pfeffer said “Now that we have
an agreed position we are looking for a timely decision by
government to give farmers peace of mind”.
Details of the de-merger plan are:
- De-merge AWBI in order to
form a 100% grower owned, single seller single desk
marketing entity to maximise returns to growers under a new
name to reflect its independence.
- The de-merger to be
completed and the new entity be in place prior to the
commencement of the 2007/08 harvest.
- The Minister for
Agriculture to retain the right to issue export licenses in
cases of exceptional market failure whilst the de-merger
occurs.
- The new de-merged company
as a wholly grower owned and controlled company to be fully
equipped with the necessary staff and financial resources to
operate as the manager of the single desk. The new entity
will assume control of any open pools and continue the role
of receiver of last resort.
- The new National Pool
manager will introduce contestable and competitive pricing
of the services it requires to operate the National Pool.
- Supervision of the new
National Pool manager to be boosted with greater governance,
accountability and transparency.
The State Farming Organisations
look forward to working with the Government and AWB to ensure
this can be done by the commencement of the 2007/08 harvest.
A de-merger facilitation working group should be formed
immediately comprised of Government, State Farming Organisations
and AWB Ltd to investigate the finer details of and implement
the above steps. |
|
