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 Nats still pine for the single desk 

Nats still pine for the single desk

04 Nov, 2009 04:40 PM
IT MAY be close to 18 months since the wheat industry was deregulated, but the Federal National Party is still burning a candle for the former single desk.

Nationals Senator Fiona Nash said the party had supported the single desk all along, and was concerned that the deregulated environment was proving "a shambles".

Together with fellow Senator John Williams, Sen. Nash urged Aussie wheat growers to lodge a submission to the National Productivity Commission inquiry into wheat marketing arrangements, highlighting their concerns.

The Productivity Commission inquiry will review the operation and the costs and benefits of the Wheat Export Marketing Act 2008 and the Wheat Export Accreditation Scheme 2008, which came into effect in July last year.

The Nationals pointed to a rally of wheat growers in Canberra earlier in the year lobbying for the re-introduction of the single desk arrangement as proof there was still strong support for an orderly marketing system.

Sen. Williams said there were many growers still upset at the abolition of the single desk, pointing to the decline in wheat prices as a cause for concern.

"Since March last year, the world indicator price of wheat has fallen from a high of $US428 a tonne to $US226 a tonne last month," Sen. Williams said.

The rebuilding of world wheat stocks and the rising Australian dollar are putting downward pressure on the price Australian growers are receiving.

Market analysts have told growers that the single desk would have only had minimal protection against the drop in prices, caused largely by record production over the past two years.

But Sen. Nash said growers were losing confidence in the new selling arrangements, with worries about whether there would be a buyer for their grain.

She said the confusion extended right along the supply chain, with issues surrounding loading export vessels caused by delays.

"The marketing of Australian wheat is a shambles. The uncertainty of where to sell is causing wheat to be stored for longer; there are demurrage charges of boats waiting at sea for extended periods while they wait for a possible load; and there is no strategic targeting of export markets," she claimed.

While the Nationals' senators did not spell out their desire for a return to the single desk, they said their policy was support for a "fair system of marketing in order to maximise returns for the national crop", a key catchphrase of pro-regulation rhetoric.

Meanwhile, Nationals Shadow Minister for Agriculture, John Cobb, has accused the Federal Government of setting the commission up to fail.

Mr Cobb said the submission dates for the inquiry clashed with harvest.

The Productivity Commission Inquiry will receive submissions until November 13 this year, followed by a series of public hearings and roundtables, and the report has to be presented to the Government by July 1 next year.

"Anyone with even the slightest knowledge of the wheat industry in Australia would know that November through to December is the busiest time of year for grain growers with harvest in full swing," Mr Cobb said.

"I can only assume that the Productivity Commission or the Minister’s office knows absolutely nothing about the wheat industry which does not bode well for any recommendations the Productivity Commission may make."

He said the Productivity Commission must delay the cut off dates for written and public submissions until after harvest if the inquiry into wheat export marketing arrangements is to have any credibility.

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Date: Newest first | Oldest first
There are a number of different desk models being considered by growers to present to sympathetic govts down the road, the current dogs breakfast is doing to wheat what the deregulation “religion” did for wool and dairy.
Posted by Ken, 4/11/2009 7:38:01 PM
Fiona Nash and John Williams must be very, very young. It was the National Party, not the ALP, who killed the single desk, when with blind loyalty to the bookworm Liberals they abolished the Wheat Board.

Once the AWB had been privatised, the single desk was doomed, because it is not proper for a private company to hold a monopoly in the market for a major commodity.

Posted by Ted O'Brien, 5/11/2009 3:08:31 AM
Fiona Nash and John Williams are correct - the industry is turning into a shambles and growers are reacting by flagging a reduction in plantings for next season.
Posted by Full Profile., 5/11/2009 4:38:47 AM
Here's a suggestion: Let's make it compulsory for those who want the single desk to sell their wheat through a single organisation. And those who don't want the single desk can sell it how they like. Should keep everyone happy.
Posted by dickytiger, 5/11/2009 6:48:10 AM
There is nothing to prevent growers from selling through a single marketing arm, and AWB is still there. If the single desk is so good, why is it not recreated by popular demand?
Posted by doubtit, 5/11/2009 10:31:01 AM
No response from Jock yet? He must be on holidays.
Posted by Bushie Bill, 6/11/2009 3:06:45 PM
So do these senators seriously believe that back in the good old days of a single desk system the AWB could have protected us from record levels of global production, a high Aussie dollar, inefficient supply chain costs and demurrage charges. Further do they believe that all grain was sold for $428 (or the peak of the market in any given year). A single desk marketing system was still subject to global supply and demand, our exports were and always will be exposed to a variable Aussie dollar, shipping and all demurrage costs were just added to the pool, as were handling fees (which were never disclosed) and all other supply chain costs and “transport fees” these were also worn by us - the grower. I can only speak for myself here in NSW but our current single biggest issue is our inefficient supply chain (GrainCorp), the ports and the rail. This is the key issue that needs Government attention, not the marketing system.
Posted by Misdirected attention and confusion, 6/11/2009 3:09:39 PM
In a "deregulated" market place the laws of supply and demand should reign supreme. Under the single desk model producers received the message from the consumers as producers were in control of marketing, thus more money, more grain grown; less money, less grain grown. Under the current environment with large multinationals in control of the market, consumers' messages will stop with the middleman; he can then give his own message to the producer (eg. a high price may be taken by the trader and a lower price filters through to the grower, distorting supply demand). This is not deregulation or economic rationalism. Take the dairy industry for example, where milk is sold by large supermarkets for whatever price they like and producers are payed a small part of this. To believe we have deregulated industries is to be blind to what is happening, we are more regulated than we ever were and more poor people will starve so some people can get rich. Get out of the way of progress hey, haven't we come a long way?
Posted by rod, 8/11/2009 11:38:29 AM
Yesterdays' heroes, fighting yesterdays' wars, with no change of outcome possible.
Posted by Bushie Bill, 14/11/2009 2:15:13 PM

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Nationals Senator Fiona Nash.
Nationals Senator Fiona Nash.
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04 November, 2009
POLL
Q: Should the Nationals and Liberals dissolve the Federal Coalition?

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Undecided
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Total Votes: 526
Poll Date: 01 November, 2009

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