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 Deregulation profit claims slammed 

Deregulation profit claims slammed

21 Jan, 2010 02:42 PM
SINGLE desk supporters are angered by repeated claims WA growers are benefiting up to $35 per tonne more than east coast growers through removal of the national wheat pool, and want the assertion justified.

Pastoralists and Graziers Association (PGA) president Rob Gillam has been slammed for saying eastern states wheat prices were traditionally higher than WA, in the regulated market.

However, former AWB Board member and Morawa graingrower Chris Moffet said a number of WA farmers were starting to question the PGA’s bragging rights.

Mr Moffet said he also doubted the claim WA growers had $35/t more in their pockets, because of the deregulated market.

He said the claim resulted from analysis relating to the first six months of deregulation and was now outdated.

“If the proponents and champions of deregulation questioned this figure of $35/t, they would see it has been taken from a period when there was a rising market,” he said.

“Can anyone point out what the difference is now?

“Those who claim that there’s a price differential of $35/t between east and west coast growers, have never been able to explain where it came from.”

Mr Moffet said wheat growing was a long-term business and therefore it was impossible to judge the outcome of deregulation based on the performance of prices in one season.

“One sparrow does not make a spring,” he said.

“If this $35/t occurs over five seasons, it then becomes a very valid point.

“However, we are not at that point yet."

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