The South Australian Farmers Federation Grains Industry Committee says it is not surprised the ACCC has given approval to Viterra to proceed with the takeover of ABB Grain, but it says the real issue is competition at ports and not in the grain market.
Chair of SAFF Grains, Michael Schaefer, says the ACCC had no option but approve the Viterra bid under Section 50 of the Trade Practices Act 1974 as there will be no lessening of competition in the South Australian grains industry.
"As ABB Grain already holds a monopoly in South Australia, how could there be any lessening of competion?" Mr Schaefer said.
"Regardless of the future ownership of ABB Grain, what is required is to remove the monopoly control of South Australia’s ports from one company.
"This would create real competition that can lead to efficiencies in the supply chain, with the efficiencies gained shared among all participants including growers, this monopoly control must be removed.
"It wouldn’t then matter as much who owns ABB Grain."
SAFF Grains believes a number of charges are required to the Viterra-ABB deal, including:
· the sale of at least the port at Port Adelaide Outer Harbor;
· information flows and information of stocks, sales, shipping and warehousing to be available to all;
· the need for an independent operator of the shipping stem; and
· effective monitoring of port pricing.
Until those changes are made, SAFF will continue to lobby shareholders to vote against the bid.
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