July 1, 2008

New wheat export regulator steps up in Australia

Regulator Wheat Exports Australia starts operations Tuesday (June 30, 2008) to administer new arrangements covering bulk wheat exports, replacing the Export Wheat Commission.

Peter Wood, the regulator's acting chief executive, said the Wheat Export Marketing Act 2008 that was agreed on by parliament last week establishes a new era for wheat export arrangements.

"Exporters wanting to ship wheat in bulk from Australia will need to apply for accreditation from WEA, which has the power to grant, vary, suspend or cancel that accreditation," he said in a statement.

The new system replaces a protected system that since World War II has allowed AWB Ltd. (AWB.AU) or its predecessor, the Australian Wheat Board, to operate an export monopoly or, in recent years, dominate exports from Australia - potentially a major global supplier.

The commission consulted widely with industry and grower groups in developing the new system, helping to ensure a smooth transition to the new arrangements, he said.

WEA will be funded through application fees under the bulk exports accreditation arrangements, as a minor export charge applies to all wheat exports from Australia, he said.