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Close to record exports

06 Jan, 2012 02:00 AM
THE STRONG results highlighted in the recently released Wheat Exports Australia report show deregulation is working, according to SAFF grains industry committee chairman Michael Schaefer.

But he believes growers will not see the full benefit until issues with South Australia's supply chain are addressed.

There was 18.5 million tonnes of wheat exported last year, according to Wheat Exports Australia, compared with 19.1mt in 1996-7 - the Australian record.

Bulk exports rose significantly year-on-year, from 12.1mt in 2009-10 to 16.3mt in 2010-11.

One of the major facts of interest for growers was the number of exporters and buyers.

There were 19 active exporters, moving grain to a whopping 182 bulk buyers and 464 containerised buyers.

These numbers are up markedly in the past three years, with container buyers rising 15pc since 2008-9.

The majority of bulk wheat exports again went to Asia with exports to the region increasing by 37 per cent from 2009-10.

Exports to Africa, including the major market of Sudan, increased by 49pc, while the healing process following the oil-for-food scandal appears to be working, with the first sales of wheat to Iraq since the Volcker report came out, a highlight of an increase in exports to the Middle East of 21pc.

Although the single desk is gone, key exporters have emerged, with seven major companies moving more than 1mt for the export year.

Of the 16.3mt of bulk wheat exported during 2010-11, 8.5mt (52pc) was shipped to five countries: Indonesia, Vietnam, South Korea, Japan and Iraq.

Mr Schaefer said those figures showed the deregulated market was working.

"The fact we've got all these people participating is a great thing, but what we need is more competition in the supply chain," he said.

"We need to try and get those costs in the supply chain to be as competitive as possible.

"We're not getting the full benefits of deregulation because of supply chain issues."

Mr Schaefer said the grains committee welcomed the news that Mallee growers were setting up competitive storage at Tailem Bend.

"But at the end of the day, we need competition at the port," he said.

* More in SJ's Jan 5 edition

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comments


Date: Newest first | Oldest first
Michael Schaefer has no choice than to say that deregulation is working.He was one of the key players in a process which has removed grower contol from marketing and logistics.

Mr Schaefer knows that supply chain costs have markedly increased since deregulation-they are now over 30% of the value of the grain from a pre deregulation level of 13-16%.

Industry experts are also suggesting that we are selling more wheat to certain customers because it is cheaper due to traders competing the price down.

Why is The WEA doing nothing to test the pricing of export grain as it did under regulation?

Posted by Jock Munro, 6/01/2012 7:11:03 AM, on Stock Journal
Jock. For all your drivell, you and the NSWFA Grain Committee haven't made any difference at all. With membership loss, this is obviously the only forum you and your small band of cronies have left to convey this tirade of bitter and twisted, outdated claptrap whenever there is an article with any relevance to wheat. I can't believe you take this site so seriously. About time you got a good agronomic and financial consultant and looked forward mate.
Posted by RANKIN SPRINGS PROGRESS ASSOC., 6/01/2012 10:35:33 PM, on Stock Journal
Rankins Springs Progress Association,

Take a look at the WEA web site.

You will note how the National Pool drove logistics costs for growers downwards.

Do you really believe that farmers could be better off whilst they compete against each other?

Do you think that it is a good thing that costs are spiralling out of control?

Posted by Jock Munro, 9/01/2012 6:44:55 AM, on Stock Journal
Jock . Agree with you. I suppose your costs would have risen seeing the two exporting states are no longer funding most of the pool management fees giving you blokes in the east a free ride. We paid alot of money to provide you with a floor in your cash market.
Posted by sa farmer, 9/01/2012 1:00:08 PM, on Stock Journal
You paid no such thing, SA farmer.

AWB Ltd conducted a National Pool- you in South Australia got every bit of the advantage that we did with your shallow ports and distance from major sea routes.

You might like to refer to the WEA web site and compare the National Pool costs with what you are paying now.

Posted by Jock Munro, 10/01/2012 11:58:05 AM, on Stock Journal

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Michael Schaefer, Buckleboo
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