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 SAFF backs AWB share reform 

SAFF backs AWB share reform

23/07/2008 3:25:00 PM
The South Australian Farmers' Federation has thrown its backing behind AWB's push to do away with its dual-class shareholding structure.

Acting chairman of SAFF's grains council, Jamie Smith, says the industry needs to "secure the future for the wheat growers" now that the single desk has been dismantled by "ensuring there are a number of strong, commercially focused companies competing for our wheat growers business".

The SAFF grains council believes that it is important for wheat growers that AWB be one of those companies.

It says AWB has occupied a unique position in the industry that has allowed it to develop skills and systems in wheat marketing over a long period, with knowledge of the market and developed relationships with growers and customers.

These advantages will be part of AWB's competitive strength and should contribute to the pressure on all companies to perform, SAFF says.

"However, this will not be achieved if AWB continues to be tied to a constitution that was written for an era dominated by grower control of cooperative equity and legislation supporting the single desk," Mr Smith said.

He says the old structure not only hampers AWB but also has the potential to destroy it in a deregulated competitive environment.

"We must secure AWB and our future by embracing constitutional change," Mr Smith said.

SAFF Grains Council is urging all South Australian wheat growers to attend the forthcoming AWB meetings and then vote to change the constitution.

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