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EXPORTING WHEAT FROM AUSTRALIA

EXPORTING WHEAT FROM AUSTRALIA. ASOCIACIÓN DE COOPERATIVAS ARGENTINAS ______________________________ 14 NOVEMBER 2008. WHEAT EXPORTS AUSTRALIA. Wheat Export Marketing Act 2008 commenced on 1July 2008 The ‘single desk’ export monopoly on bulk wheat has ceased

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EXPORTING WHEAT FROM AUSTRALIA

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  1. EXPORTING WHEAT FROM AUSTRALIA ASOCIACIÓN DE COOPERATIVAS ARGENTINAS ______________________________ 14 NOVEMBER 2008

  2. WHEAT EXPORTS AUSTRALIA • Wheat Export Marketing Act 2008 commenced on 1July 2008 • The ‘single desk’ export monopoly on bulk wheat has ceased • Wheat Exports Australia (WEA) established as the export regulator to operate the wheat export accreditation scheme • Legislative objectives: • To promote the development of a bulk wheat export marketing industry that is efficient, competitive and advances the needs of wheat growers • To provide a regulatory framework in relation to participants in the bulk wheat export marketing industry. • Developed to introduce competition into the wheat industry

  3. BULK SCHEME OVERVIEW Purpose: To attest that an exporter is a fit and proper company to export bulk wheat from Australia The Bulk Scheme does not in anyway: • Regulate shipments of wheat in bags or containers (<50 tonnes) • Indemnify exporters • Provide any guarantee the exporter will remain financially viable WEA does not in anyway regulate the quality, variety or grade specifications of wheat exported from Australia

  4. NEW EXPORT ARRANGEMENTS • AWB International no longer holds any special status • Australian wheat quality will be managed by the industry and not government • WEA does not indemnify accredited exporters or provide any guarantee they will remain financially viable • Nineteen exporters have now been accredited by WEA • Exporter names and conditions of accreditation are published online www.wea.gov.au • Multiple exporters of Australian wheat means greater choice for international customers

  5. AUSTRALIAN WHEAT INDUSTRY OVERVIEW 5% 44% 19% 19% 13% Map Source: ABARE

  6. AUSTRALIA and ARGENTINA – 2007/08

  7. CASE STUDY - CBH • Co-operative Bulk Handling in Western Australia • controlled by over 5,500 grower-shareholders • net assets of more than AUD1 billion • Annual turnover of more than AUD900 million • Storage and handling: • 200 receival sites across the State • Total capacity over 19 million tonnes • 11 million tonnes received from harvest • Grain transported to 4 port terminals to meet volume and quality requirements • Investment: • 5 Indonesian and Malaysian flour mills • Vietnamese grain terminal and flour mill • Profits are re-invested in facilities and infrastructure

  8. CASE STUDY - CBH • Marketing: • Operates various marketing pools on behalf of growers • Main license to export barley, lupins and canola from WA • Large exporter of wheat accredited by WEA • Shipping: • Joint venture with shipping company • Other activities: • Quality assured grain • Research and Development • Diversification

  9. FUTURE FOR AUSTRALIAN WHEAT EXPORTS • Multiple accredited exporters competing to buy wheat from Australian growers • Greater innovation and choice for buyers and sellers • Industry self- regulation • Greater on-farm storage • Ongoing investment in grain research • New wheat varieties • Improved water use efficiency and farming methods • Better milling quality of Australian wheat

  10. Further information Contact details: Caroline Rhodes Senior Manager - Operations Wheat Exports Australia Email caroline.rhodes@wea.gov.au Phone +61 2 6202 3400 Website www.wea.gov.au

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