Press Release

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WHEAT FREE MARKET BETTER - PGA

2012-07-20

West Australian grain growers are critical of eastern state farming organisations’ calls for the return to the days of the single desk by re-regulating the export wheat industry, saying it poses no benefit for WA wheat farmers and will only serve to undermine Australia’s reputation as a first class exporter of wheat.

 

“The recent motion passed by NSW Farmers Association calling on the Federal Government to maintain oversight of the export wheat market through Wheat Exports Australia is nothing more than an attempt to resurrect the failed AWB by stealth,” PGA Western Graingrowers Chairman John Snooke said today.

 

“The costs of re-regulation under the previous wheat marketing arrangements that NSW Farmers Association want to revive were a costly impediment to the profitability of producing wheat in WA - to the extent that the numbers of grain farmers declined by 50% in a seven year period.”

 

“While the agrarian socialist farm organisation on the east coast can easily measure the success of their policies by the number of people fleeing from the regions to the cities, here in WA we measure success by the growth of commerce and trade.”

 

“In Western Australia the wheat basis improved by $20/tonne immediately upon deregulation and has been up to extremes of $90 above where it would have been under the previous arrangements.”

 

“The abolition of the single desk has led to improved efficiencies and created new global export markets for West Australian growers.”

 

“Australia’s international reputation as a wheat exporter has only increased since the removal of the single desk and re-regulating wheat exports will not only diminish our competitive advantage, but impede the West Australian wheat industry which is export dominated.”

 

“We need to bring the wheat export market into line with other agricultural commodity markets by promoting further competition through every part of the supply chain which will lead to increased productivity and profitability.”

 

An open and unhindered market will lead to more buyers competing for wheat, thus allowing for growers to obtain market value for their product and facilitate further marketing innovation and reduce costs.”

 

“It is pretty clear that the growers representatives in the eastern states value political control more highly than a globally competitive industry.”

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