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 VFF backs AWB constitutional change 

VFF backs AWB constitutional change

17/07/2008 1:20:00 PM
The Victorian Farmers' Federation will vote its standing proxies in support of the proposed changes to the constitution of AWB Ltd, which are aimed at removing the company's dual share class structure.

VFF Grains Group president, Geoff Nalder, says growers need to get over their emotional attachments to the single desk in order for AWB to prosper.

He says AWB needs to operate with the same structure as its competitors if it is expected to perform in the new wheat marketing environment.

"Whether we like it or not, the single desk is gone," Mr Nalder said.

"ABB and Graincorp have normalised their constitutions and keeping the dual share class structure would limit AWB's capacity to compete in the Wheat Export Market."

The VFF Grains Group also supported the proposed constitutional changes at AWB's February AGM, where the motion won majority support, but not the mandate required to endorse constitutional change.

"Over the past three years, the VFF has put a lot of effort into saving the Single Desk," Mr Nalder said.

"When that became impossible we worked with the Federal Government to ensure growers were least disadvantaged by the new wheat marketing legislation.

"Now that the wheat marketing legislation has passed there is no point holding back on reform of AWB for sentimental reasons."

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The VFF grains group is an undemocratic croney structure of the VFF. It's poignant that they make statements and policy that are not in the interests of Victorian wheat growers.
Posted by Hunger, the new world order on 20/07/2008 8:13:43 PM
SAFF and VFF have thrown the baby out with the bath water on this occassion. "The single desk is gone", well they not only state the obvious they forget to add that it is gone because they did not fight to retain it. The SD had its problems but it just happened to be the devil we know, now we are stuck with the devil we don't know. We the farmers are not going to benefit from the new system. Any profits ABB, AWB, CBH, Graincorp, ETC make will in part go offshore.

They are all setting up grain storage in countries like the Ukraine and that wheat and barley (grain) will sell before ours and we will have to wear the cost of extended storage and handling.

Sen Joyce fought very hard for the retention of the single desk because he could see that we (farmers) will be worse off. In the hansard inquiry into the Wheat Marketing Act, certain questions were asked of individuals and companies and ACCC and others about the inclusion of a Port Access clause in the legislation, also why they couldn't just rely on the Trade Practices Act part111a to access infrastructure, e.g. the ports and storage. This line of questioning and answers can be found in Hansard rural and regional affairs page 77 etc Tuesday 22 April 2008. This document in its entirity brings to light many issues Mr. Joyce was fighting for. The answers or lack of them by individuals and companies and the ACCC makes one feel really sick in the tummy.

ABB because of it's monoply on the ports and storage and handling (given to them by A class and B class shareidiot farmers) have the choice of loading their grain on ships first to the detriment of other players. Their involvement in overseas grain storage gives them the choice of forcing the price down at the expense of Australian growers. We will finish up paying more moorage costs and storage and handling costs as a result. Not because the markets are not there but because those markets are being filled with off shore grain. The cost factor for storing, moorage will balloon and the major providers of these services will benefit. If CBH in WA become Corporatised then they will be in the box seat to monopolise the wheat export in WA.

To top it all off the ACCC has no power to stop them. They can talk rough and slap them on the corporate wrist, but they have no teeth to split up these monoplies into managable size to control their hold overfgrowers. The single desk and it's retention would go a long way in providing the security growers need of ensuring fair access to receival points, ports and any other infrastructure controlled by the Monopolies ABB, CBH etc. Because as it stands the ACCC, Trade Practices ACT and the now Wheat Marketing Act do not address these very important issues. Read pgs 5,6,7 etc of the hansard Q and A. Read the whole bloody thing and then tell me that SAFF, Grains Council really did do their job in protecting the Aussie grain grower when they seased to support the retention of the Single Desk both for barley and Wheat. ha ha.

All the Judas who sold their industry for a pocket full of gold can now rest in the knowledge that they have left the grains industry in such chaos for our sons and daughters. "Keep your friends close and your enemies closer ", you have taken the cover off the dung heap now, wait till the stink starts rising.

I believe that we should keep hold of the A class shares because it is the only way to hold some part of the grain industry accountable to growers. ABB A class share should never have been given over to ABB. If the big monoplies "were to misbehave in terms of anticompetitive behaviour" there should be an ongoing regulatory mechanism to look at what is happening in the ports and the access regime." The people with the predominant infrastructure position in the market would be Graincorp and ABB, I presume, and if they start to exploit that position you would then go back to regulation to try and fix the situation up".

"If you do not have a choice and the only bulk handler is overcharging a the port, you really do not have a choice. So an open access regime at the ports and some price-setting maximums...." You are aware that in this legislation (Wheat Marketing Act) there is no open access regime for the receival of grain. You realise that? this is compeling reading if you are a grower and interested in your hip pocket, access to ports, receival points and every part of the chain associated with grain.

Posted by stoolly on 23/07/2008 11:03:39 AM

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Q: Do you believe the creation of an emissions trading system poses a threat or opportunity for your farm business?

Threat
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Opportunity
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Unsure - more information needed
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Total Votes: 480
Poll Date: 13/07/2008

11/12/2008 | Farm lobby groups will decide next week whether the future of farm representation will stay as it is or be broadened to bring in the big end of town.
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