December 19, 2006

 

Australian growers back wheat export monopoly, but not AWB

 

 

A strong show of support among growers in Australia's Victoria state for modifications to a wheat export monopoly should put pressure on Agriculture Minister Peter McGauran to reject applications for bulk export permits, Ian Hastings, a grower leader in Victoria state, said Tuesday (Dec 19).

 

The Wheat Export Authority confirmed the minister is considering 44 applications for permits to export bulk wheat by concerns other than usual exporter AWB Ltd. (AWB.AU).

 

Hastings, who is president of the Victorian Farmers Federation grains section said he now has a "strong mandate" to promote a model for wheat exports agreed midyear by the VFF and overwhelmingly endorsed by 400 growers attending a meeting Monday.

 

Under the VFF plan, the wheat export monopoly, which would retain a veto right over bulk wheat exports, would be split from AWB, whose international unit now operates it.

 

"This is what the farmers of Victoria want after they've had a very robust discussion about the pros and cons," Hastings said.

 

AWB, which has held a long-term monopoly over Australia's bulk wheat exports, was stripped of its veto over exports by rivals early December as part of a government response to its role in an Iraqi kickbacks scandal.

 

The veto power was handed to the minister for six months, during which time the government pledged to consult with growers about the long-term future of export arrangements.

 

AWB has previously argued that its power to veto bulk exports by others was an intrinsic part of its export monopoly.

 

"If the government is going to stand by its promise that the growers will have a large part of the say in what form of wheat marketing we end up with, then agreeing to or allowing these export permits at the moment effectively says the decision is already made and I don't believe the government will do that," he said.

 

Meanwhile, Trevor de Landgrafft, President of lobby Western Australian Farmers' Federation, said after attending a grower meeting Monday growers want to retain an export wheat monopoly but are not attached to AWB's operation of it.

 

"The single desk is what they want," he said.

 

Minister McGauran's spokesman is not saying when any decision on the export applications might be made.