April 4, 2006

Australian farmers warned about loss of monopoly for wheat exports

Farmers have been warned that grain prices could drop drastically if AWB loses its hold on its monopoly, or what it calls the single desk for Australian wheat exports.

AWB International director Clinton Starr told a meeting of grain growers on Apr 3, that the company has secured a US$13 a tonne premium each year through its powerful bargaining position.

Plans are underway to change the single desk after the Cole inquiry into AWB's alleged role in dealing with the corrupt Saddam Hussein regime. Starr said farmers should be very concerned about any changes to its single desk, adding that the company's experience in managing the system is indispensable to growers.

Buoyed by India's announcement that it is looking to import a further 1.5 million tonnes of wheat after buying 500,000 tonnes from Australia earlier, Starr delivered a poignant call for farmers to look before they leap.

Hinting that farmers should not be biting the hand feeding them, Starr said when farmers effect changes, it would affect the intellectual powers and experience that have produced profits for them over the years.