August 27, 2007

 

Australian wheat industry companies cleared for container exports
 

 

Some of Australia's major grain companies are among a host of others accredited Monday (Aug 27) to service a newly deregulated export trade in non-bulk wheat, which some believe could grow more to about A$1.5 billion from the new crop.

Industry regulator, Wheat Export Authority or WEA, said the new arrangements for exporting wheat in bags and containers starts Monday, with WEA formally accrediting an initial batch of 44 packer sites, 26 testing laboratory locations and five superintendence companies across five states under the scheme.

 

"After weeks of expectation, consultation and hard work, the wheat industry is ready to pack and ship wheat under the new Non-Bulk Wheat Quality Assurance Scheme," WEA Acting Chief Executive Peter Woods said in a statement.

 

"Accreditation is an ongoing process with individuals and companies able to apply at any time," he said.

 

Companies accredited as packers include Australian Bulk Alliance, a grain storage joint venture of ABB Grain Ltd. and Sumitomo Corp. that operates in Australia's south-east, units of GrainCorp Ltd., which dominates grain logistics in eastern Australia, and Cooperative Bulk Handling Ltd., which operates a silo and export terminal network in the country's south-west.

 

Deputy Prime Minister Mark Vaile, citing industry participants, said mid-August that up to 4 million tonnes could be exported in containers from the next crop, if there was a more than fourfold increase compared with the volume of exports in 2005/06.

 

Changes to export arrangements are part of the government's response to an inquiry into the payment by former monopoly wheat exporter AWB Ltd. of kickbacks of US$221.7 million to Saddam Hussein's regime during the operation of a United Nations oil-for-food programme up to the invasion of Iraq in 2003.

 

Under the new export arrangements for bags and containers, exporters no longer need to apply to the WEA for export consents, though they need to adhere to the scheme's requirements, Woods said.

 

The scheme aims to protect the international reputation of Australian wheat by ensuring exports are consistent with the sales contract specifications, he said.

 

Failure to adhere to the scheme could see exporters losing the capacity to export wheat as well as facing stiff fines, currently a maximum of A$330,000 for a company and A$66,000 for an individual.

 

A$1=US$0.8314 (Aug 27)