February 6, 2009

Australia's wheat farmers are calling on the government to revamp the country's wheat marketing arrangements in order to provide better information on stocks held by grain handlers, industry leaders said on Thursday (Feb 5).

The Australian Bureau of Statistics will provide data on wheat stock levels and exports from March, but it will date back two months, making it difficult to assess current market situation.

The demand for improved information comes seven months after Australia deregulated its wheat export industry, allowing 21 accredited exporters to replace the monopoly of AWB Ltd, the former Australian Wheat Board.

The 2008-09 harvest was less than ideal, with many issues arising out of the changes to the wheat marketing system, said Richard Clark, chairman of the New South Wales Farmers Association's grains committee.

There are concerns about the major players and their readiness and capacity to provide trade information at least at the generic level, and have it delivered in a timely manner, said Peter Flottmann, chief executive of Grain Growers Association.

Part of the challenge is what type of information is available and if it would be delivered in a timely fashion, said Flottmann.

Wheat Exports Australia (WEA) said it is aware of the problem. Industry stakeholders have raised the concern of information transparency, said WEA Chief Executive Peter Woods.

GrainCorp, the largest grain handler in eastern Australia, said growers have several ways to access information, ranging from grain company websites to information at silos.

Clark said data on the quantity of grain being stored would be useful when making marketing decisions, as many growers were holding grain on-farm or in warehouses as they attempted to obtain the best price.

"The bulk handling companies that pushed so hard to get deregulation and so hard to break down AWB's power in the market place have in fact inherited that power," Clark said.