June 7, 2006

 

Australian grain group wants wheat exports split from AWB

 

 

Graingrowers in Australia's Victoria state have backed a plan to split a wheat export monopoly managed by an international unit of AWB Ltd from its parent company to make it more accountable.

 

Under the plan proposed by the grains group of the Victorian Farmers' Federation, AWB would lose any commercial influence over the export monopoly, known locally as the single desk.

 

"We are just concerned about the single desk and making sure that it has no other influences on it other than maximising returns to growers, so it is about separation of the management of the desk from a commercial influence," Ian Hastings, president of VFF's grains group said Wednesday (Jun 7) in a report on ABC radio.

 

Grain growers will receive more dollars for their wheat than they currently do from returns from the collective export sales pools operated by AWB, he said.

 

The Australian Government has said it plans to change the marketing structure of the wheat export monopoly after it receives a report of an inquiry headed by Terence Cole into the legality of US$221.7 million in kickbacks paid by AWB to Saddam Hussein's regime under a United Nations oil-for-food program.

 

The Cole inquiry is scheduled to report by Jun 30.

 

"We feel it is time that growers have a firm view of what the single desk should be in the future and be prepared to discuss this with the government prior to them finalising their position post Cole," Hastings said in a separate statement.

 

"This is an opportunity to rebuild and revitalise the single desk," he said, adding that this is a model that delivers greater returns and control to growers, not shareholders.

 

Hastings said some in the wheat industry groups are maneuvering to deregulate the industry to better serve their own interests.

 

The oil-for-food scandal and revelations from the Cole inquiry has alarmed growers and shaken AWB, he said, but he urged the Government not to act hastily to the detriment of growers.

 

The Victorian group wants their model discussed at a meeting of national grower lobby the Grains Council of Australia scheduled for late July.