July 21, 2010

Australian corporation shelves decision on wheat classification

The Grains Research and Development Corporation (GRDC) will continue to oversee wheat classification until the end of the year.

It said it agreed to extend the time to allow a long-term plan to be established.

A long-term plan was expected by June, after the Wheat Classification Council, which was headed up by grain grower Rob Sewell, delivered its report and recommendations to the GRDC in June.

The report was considered and discussed by the GRDC board, but it did not sign off on a final decision. Instead, the board agreed to leave the decision for a month to allow more time for negotiations and further industry consultation.

The final sign-off is expected when the GRDC board meets, after the Australian Grains Industry Conference next week.

Wheat classification is putting different varieties into grades based on expected quality. The process makes sure that when different grain varieties are merged together, there is consistency in physical quality and processing performance, and so when customers buy it, it meets expectations.

Wheat classification used to be handled by AWB, until the industry was deregulated several years ago when AWB was stripped of its monopoly exporter status. According to industry sources, the final decision is expected to hand responsibility for wheat classification to current grain standards body, Grain Trade Australia.